The Expected Return on Mike's Seafood Shares Is 10

question 45

Multiple Choice

The expected return on Mike's Seafood shares is 10.8 per cent. If the expected return on the market is 10 per cent and the beta for Kiwi is 1.7, then what is the risk-free rate?

• A) 4.5%
• B) 5.0%
• C) 5.5%
• D) 6.0%

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Definitions:

Extroverted

A personality trait characterized by outgoingness, sociability, and a preference for external stimulation over solitary activities.

Proximity

The physical or psychological closeness between people, objects, or ideas, influencing their interaction and relationships.

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits as causes of others' behaviors.

Personal Factors

Individual attributes such as personality, beliefs, and experiences that influence one's behavior and perceptions.