Security a Has an Expected Rate of Return of 22

question 71

Essay

Security A has an expected rate of return of 22% and a beta of 2.5.Security B has a beta of 1.20.If the Treasury note rate is 2.0%,what is the expected rate of return for security B?

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Definitions:

Mental Disease

A general term for a wide range of conditions that affect mood, thinking, and behavior.

Mental Defect

An outdated and insensitive term for a condition causing limitations in intellectual functioning and adaptive behavior.

Mentally Unstable

Describes a state in which an individual experiences significant fluctuations in their mental health, affecting their thoughts, emotions, and behaviors.

Mental Disorders

A broad range of conditions affecting mood, thinking, and behavior, often leading to distress or impaired functioning.