Zoro Corporation Has a Beta of 2

question 45

Multiple Choice

Zoro Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on Zoro stock?

• A) 21%.
• B) 41%.
• C) 16%.
• D) 13%.
• E) none of the above

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Definitions:

Marriage

A legally or formally recognized union of two people as partners in a personal relationship, historically institutionally recognized as between a man and a woman.

Delaying Marriage

The decision to postpone entering into a legally recognized union or partnership until a later age.

Coworkers

Individuals who work together in the same organization or workplace.

Spouse

A partner in a marriage or civil union, legally bound to another individual, sharing household, familial, and social responsibilities.