Huit Industries' Ordinary Shares Have an Expected Return of 11

question 28

Multiple Choice

Huit Industries' ordinary shares have an expected return of 11.4% and a beta of 1.2.If the expected risk-free return is 3%,what is the expected return for the market (round your answer to the nearest .1%) ?

• A)7.7%
• B)9.6%
• C)10.0%
• D)11.4%

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Definitions:

Weekly Interest Rate

The amount of interest charged or earned over a week, often used to describe the rate for loans or savings accounts on a weekly basis.

Disbursements

Payments made by a business in cash or cash equivalents, often pertaining to operating expenses.

Holding Cash

The practice of keeping a portion of assets in liquid cash form as a safeguard against uncertainty or to meet short-term obligations.