Consider the CAPM

question 74

Multiple Choice

Consider the CAPM. The expected return on the market is 18%. The expected return on a stock with a beta of 1.2 is 20%. What is the risk-free rate?

• A) 2%
• B) 6%
• C) 8%
• D) 12%

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Definitions:

Collective Intelligence

The shared or group intelligence that emerges from the collaboration and competition of many individuals and appears in consensus decision making.

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