The SML Is 6% + 8% (Beta)

question 45

Multiple Choice

The SML is 6% + 8% (Beta) . For Stock A, its covariance with the market is 200 and its standard deviation is 10. The expected rate of return for Stock A is

• A) 10%.
• B) 18%.
• C) 8%.
• D) 22%.

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Definitions:

Emotional Expressions

Manifestations of feelings that may involve gestures, facial expressions, and vocal tone, serving communicative functions in social interactions.

Love

A profound, complex feeling of affection and attachment towards others, often characterized by emotional, physical, and social components.

Anger

A strong feeling of displeasure and belligerence aroused by a perceived wrong or injustice.

Schacter-Singer

A theory of emotion that suggests emotions are determined by physiological arousal and the cognitive labeling of that arousal.