The Risk-Free Rate of Return Is Currently 3 Percent, Whereas

question 15

Multiple Choice

The risk-free rate of return is currently 3 percent, whereas the market risk premium is 6 percent. If the beta of Lenz, Inc., stock is 1.8, then what is the expected return on Lenz?

• A) 8.40%
• B) 10.80%
• C) 13.80%
• D) 19.20%

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Definitions:

Absent Objects

Concepts or items that are not physically present but can still have effects or be represented in thought.

Motor Abilities

The physical skills related to movement and coordination, including gross and fine motor skills.

Object Permanence

The concept that objects remain in existence even when they're not being perceived through sight, sound, touch, smell, or any other senses.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.