Security a Has an Expected Rate of Return of 22

question 79

Essay

Security A has an expected rate of return of 22% and a beta of 2.5. Security B has a beta of 1.20. If the Treasury bill rate is 2.0%, what is the expected rate of return for security B?

---

Definitions:

Public Law 94-142

A landmark legislation in the United States, also known as the Education for All Handicapped Children Act of 1975, which mandates a free and appropriate public education for all children with disabilities.

Inclusion

Educating a child with special educational needs full-time in the regular classroom.

Disability

A condition, either physical or mental, that restricts an individual's mobility, sensory functions, or ability to engage in activities.

Regular Classroom

A traditional educational setting where students of varying abilities and backgrounds are taught together.