Bell Weather,Inc

question 45

Multiple Choice

Bell Weather,Inc.has a beta of 1.25.The return on the market portfolio is 12.5%,and the risk-free rate is 5%.According to CAPM,what is the required return on this stock?

• A)20.62%
• B)9.37%
• C)14.37%
• D)15.62%

---

Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Public Company Accounting Oversight Board

A non-profit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

Public Companies

Companies that have issued securities through an initial public offering and are traded on at least one stock exchange or in over-the-counter markets.

General Duty

An obligation imposed on individuals or entities to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.