Huit Industries' Common Stock Has an Expected Return of 11

question 25

Multiple Choice

Huit Industries' common stock has an expected return of 11.4% and a beta of 1.2.If the expected risk-free return is 3%,what is the expected return for the market (round your answer to the nearest .1%) ?

• A)7.7%
• B)9.6%
• C)10.0%
• D)11.4%

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Definitions:

Amniocentesis

A medical procedure involving the extraction of a small amount of amniotic fluid for testing, typically to diagnose genetic disorders in a fetus.

Karyotype

A complete picture of a person's chromosomes, arranged in order and used to look for chromosomal abnormalities.

Chorionic Villus Sampling

A prenatal test involving the extraction of a small sample of the placental tissue to test for chromosomal abnormalities.

Pedigree

In genetics, a pedigree is a diagram that shows the occurrence and appearance or phenotypes of a particular gene or organism and its ancestors from one generation to the next, often used to study the inheritance of specific traits.