Given the Capital Asset Pricing Model, a Security with a Beta

question 19

Multiple Choice

Given the capital asset pricing model, a security with a beta of 1.5 should return ________, if the risk-free rate is 3% and the market return is 11%.

• A) 16.5%
• B) 14.0%
• C) 14.5%
• D) 15.0%

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Definitions:

Sandra Bem

A psychologist known for her work on gender roles and for developing the gender schema theory.

Bisexual

Pertaining to a sexual orientation in which an individual is attracted to both male and female genders.

Gender Schema Theory

A theory that suggests people learn about gender roles and develop gender-based beliefs through cultural and societal norms.

Mental Pattern

A cognitive framework or structure that helps in organizing and interpreting information.