Estimate the Required Return on Baniff Corp Under the Following

question 36

Multiple Choice

Estimate the required return on Baniff Corp under the following conditions: The average stock is returning 11%
Short term treasury bills yield 5%
Baniff's beta is 1.25

• A)11.00%
• B)17.25%
• C)12.50%
• D)6.00%

---

Definitions:

Neurosis

A broad category of psychological disorders characterized by anxiety, depression, or other feelings of distress that affect day-to-day functioning.

Eating Disorders

Mental health disorders characterized by abnormal or disturbed eating habits, which can severely impact a person’s health and well-being.

Depression

A common mental health disorder involving persistent sadness, loss of interest, and a lack of energy, affecting an individual’s feelings, thoughts, and behaviors.

Socially Rewarded

A concept referring to benefits or positive feedback received from social interactions or society for behavior deemed desirable or conforming to social norms.