The Rate on Six-Month T-Bills Is Currently 5

question 65

Multiple Choice

The rate on six-month T-bills is currently 5%. Andvark Company stock has a beta of 1.69 and a required rate of return of 15.4%. According to CAPM, determine the return on the market portfolio.

• A) 11.15%
• B) 6.15%
• C) 17.07%
• D) 14.11%

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Definitions:

Wireless Media

Transmission mediums used in wireless communication that carry signals without the need for physical wires or cables.

LANs

Local Area Networks, a network that spans a small geographic area, connecting various devices to share resources and information more efficiently.

Home-based Business

A business operated from the owner's home, leveraging the internet and digital tools for managing business activities and reaching customers.

Data Collision

When two computers send data at the same time and the sets of data collide somewhere in the transmission media.