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%

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Definitions:

Work Ethic

A set of values based on the moral virtues of hard work and diligence, often emphasizing responsibility, integrity, and discipline on the job.

Line Manager

An individual in a direct management position who oversees the work of subordinates and is responsible for administrative and personnel decisions.

Assembly Worker

A factory employee responsible for putting together parts or components of a product in a manufacturing process.

Competency Modeling Approach

A technique used in human resource management that identifies the specific skills, knowledge, abilities, and behaviors required for effective performance in a job or organization.