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:

Commercial Banks

Financial institutions that offer a wide range of banking services to businesses and consumers, including deposit accounts and loans.

Short-Term Loans

Loans that are scheduled to be repaid in less than a year, used to meet immediate financial needs or cash flow shortages.

Abnormal Returns

Financial returns that exceed what is expected based on risk-adjusted benchmarks or historical averages.

Macroeconomic Analysis

The examination of the overall economic dynamics, including national income, growth rates, inflation, and unemployment.