Hefty Stock Has a Beta of 1

question 26

Multiple Choice

Hefty stock has a beta of 1.2. If the risk-free rate is 7% and the market risk premium is 6.5%, what is the required rate of return on Hefty?

• A) 14.8%
• B) 14.4%
• C) 12.4%
• D) 13.5%

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Definitions:

Communism

A political and economic ideology advocating for a classless society in which all property and resources are communally owned, and each person works and is compensated according to their abilities and needs.

Measure Progress

The processes and methods used to assess the advancement or development of societies, economies, or individuals towards specific goals.

Body Count

The total number of killed, wounded, or missing individuals in a particular event, often used in the context of military conflicts or disasters.

Opponents

Opponents are individuals or groups that compete against or hold differing views from another in a conflict, competition, or debate.