The Expected Return on the Market Portfolio Is Currently 11

question 55

Multiple Choice

The expected return on the market portfolio is currently 11%.Battmobile Corporation shareholders require a rate of return of 23.0%,and the share 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:

NaCN

Sodium cyanide, a highly toxic compound used in industrial processes such as mining and chemical synthesis.

1-methylcyclohexanol

A secondary alcohol derived from cyclohexane, featuring a methyl group on its ring, used in organic synthesis.

1-bromo-1-methylcyclohexane

A brominated organic compound featuring a bromine and a methyl group attached to a cyclohexane ring.

HBr

Hydrobromic acid, a strong acid formed by dissolving hydrogen bromide in water, used in chemical synthesis.