Kollo Enterprises Has a Beta of 0

question 50

Multiple Choice

Kollo Enterprises has a beta of 0.70,the real risk-free rate is 2.00%,investors expect a 3.00% future inflation rate,and the market risk premium is 4.70%.What is Kollo's required rate of return? Do not round your intermediate calculations.

• A) 7.96%
• B) 7.30%
• C) 6.47%
• D) 6.96%
• E) 8.29%

---

Definitions:

Capital

The wealth, whether in money or assets, that is used or invested to generate more wealth.

Gardner's Theory

Refers to Howard Gardner's theory of multiple intelligences, which proposes that people have different kinds of intelligences, such as linguistic, logical-mathematical, and musical, among others.

Linguistic

Pertains to language, including its structure, use, and the study of how words and their construction create meaning.

Bodily-Kinesthetic

Pertains to the capacity to use one's body in highly differentiated and skilled ways, for expressive as well as goal-directed purposes.