Overall Cost of Capital: What Is the Beta of a Company

question 1

Multiple Choice

Overall cost of capital: What is the beta of a company whose equity has an expected return of 21.3 percent when the risk-free rate of return is 7.0 percent and the expected return on the market is 18.0 percent?

• A) 0.79
• B) 1.30
• C) 1.57
• D) none of the above

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Definitions:

Glutamate

A major neurotransmitter in the nervous system, essential for memory, learning, and brain development.

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A mental health condition characterized by persistent and intense feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

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A subjective feeling of tiredness which is distinct from weakness, and has a gradual onset.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.