Given the Following Information, Determine the Risk-Free Rate

question 14

Multiple Choice

Given the following information, determine the risk-free rate. Cost of equity = 12%
Beta = 1.50
Market risk premium = 6%

• A) 6.0%
• B) 3.0%
• C) 9.0%
• D) 6.5%

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Definitions:

Disabled Adults

Individuals over the age of adulthood who are unable to perform certain activities due to physical or mental impairments.

Crystal Form

The external shape displayed by a crystal or a mineral, determined by the internal arrangement of its atoms or molecules.

Cleavage

1. The tendency of minerals to break along specific orientations of closely spaced planes. 2. The tendency of a rock, especially a metamorphic rock, to split along mostly parallel planes.

Luster

The reflection of light from the surface of a mineral, especially its quality and intensity; the appearance of a mineral in reflected light.