What Is the Expected Return on a Stock with a Beta

question 22

Multiple Choice

What is the expected return on a stock with a beta of .8, given a risk-free rate of 3.5% and an expected market return of 15.5%?

• A) 3.8%
• B) 13.1%
• C) 15.6%
• D) 19.1%

---

Definitions:

REM Sleep

A stage of sleep characterized by rapid eye movements and is closely associated with vivid dreaming.

Postural Muscles

Muscles that are primarily responsible for maintaining posture and balance, enabling the body to stand upright and perform movements efficiently.

Brain Activity

The functioning and neural processes occurring within the brain, often studied through imaging techniques.

REM Sleep

A phase of sleep characterized by rapid eye movements, dreams, and paralysis of motor systems.