The Expected Return on Kiwi Computers Stock Is 16

question 37

Multiple Choice

The expected return on Kiwi Computers stock is 16.6 percent. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, then what is Kiwi's beta?

• A) 1.26
• B) 2.10
• C) 2.80
• D) 3.15

---

Definitions:

Raw Materials

The basic substances or components that are processed or combined to manufacture finished goods.

Journalize

The process of recording financial transactions in a company’s accounting records, or journal, in chronological order.

Units

A measurement of quantity, such as items, hours, or other measures, used in the organization or operation of businesses.

Direct Labor

The wages and benefits paid to employees who are directly involved in the production process of a company's products or services.