If the Risk Free Rate Is 5%, the Beta Is

question 36

Multiple Choice

If the risk free rate is 5%, the beta is .8, and the rate of return for the S&P 500 is 14%, what is the expected return?

• A) 9.9%
• B) 11.7%
• C) 12.2%
• D) 15%

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Definitions:

Experimental Group

A group in a scientific study that is exposed to the variable being tested, in contrast to the control group.

Control Group

In an experiment, the group that is not exposed to the treatment, serving as a comparison point for assessing the effect of that treatment.

Independent Variable

In an experiment, it is the variable that is controlled or changed to test its effects on the dependent variable.

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds, often sweetened and consumed as confectionery.