The Expected Return on the Market Portfolio Is Currently 11

question 84

Multiple Choice

The expected return on the market portfolio is currently 11%.Battmobile Corporation share holders require a rate of return of 23.0%, and the shares has a beta of 2.5.According to CAPM, determine the risk-free rate.

• A)17.5%
• B)2.75%
• C)3.0%
• D)9.2%

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Definitions:

Human Communication

The process by which individuals exchange information, feelings, and meanings through verbal and non-verbal messages.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect in a particular situation, serving as a default position until evidence suggests otherwise.

Variables

Elements or factors that can change and potentially influence the outcome of research or an experiment.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.