The Expected Return on JK Stock Is 15

question 52

Multiple Choice

The expected return on JK stock is 15.78 percent while the expected return on the market is 11.34 percent.The stock's beta is 1.51.What is the risk-free rate of return?

• A)2.22 percent
• B)2.31 percent
• C)2.42 percent
• D)2.50 percent
• E)2.63 percent

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Definitions:

Kyoto Protocol

An international treaty that commits state parties to reduce greenhouse gas emissions, based on the premise that global warming exists and human-made CO2 emissions have caused it.

Green World Initiative

An environmental endeavor aimed at promoting sustainable and eco-friendly practices.

Madrid Protocol Initiative

An international treaty designed to simplify the process of registering trademarks in multiple countries through one application process.

Triple Bottom Line

An accounting framework that incorporates three parts of sustainability: social, environmental, and financial performance.