The Rate on Six-Month T-Bills Is Currently 5

question 65

Multiple Choice

The rate on six-month T-bills is currently 5%. Andvark Company stock has a beta of 1.69 and a required rate of return of 15.4%. According to CAPM, determine the return on the market portfolio.

• A) 11.15%
• B) 6.15%
• C) 17.07%
• D) 14.11%

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Definitions:

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be enforceable.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform and fair regime for contracts for the international sale of goods.

Corporate Stocks

Equity securities that represent ownership shares in a corporation, entitling holders to a share of the corporation's profits through dividends.

Implied Title

A legal concept indicating ownership rights that are not documented but assumed through one's actions or circumstances.