Barker Corp

question 87

Multiple Choice

Barker Corp.has a beta of 1.10, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%.What is Barker's required rate of return?

• A) 9.43%
• B) 9.67%
• C) 9.92%
• D) 10.17%
• E) 10.42%

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Definitions:

Internal Consistency Reliability

A measure of the extent to which items on a test measure the same construct or characteristic.

Ratio Scale

A scale of measurement that has a meaningful zero point and equal intervals and thus can be manipulated by all mathematical principles.

Mathematical Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning in mathematics.

Absolute Zero

The lowest possible temperature where nothing could be colder and no heat energy remains in a substance, equivalent to -273.15°C or zero kelvin.