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:

Feedback Controls

Mechanisms used in a system to adjust its performance based on differences between actual outcomes and desired outcomes.

End Results

The final outcomes or conclusions of a process, activity, or operation, reflecting its effectiveness or success.

Future Planning

The process of setting goals and objectives and determining the resources and actions required to achieve them in the future.