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:

Functionalists

Scholars or theorists who analyze society, its entities, and phenomena based on the functions they perform in maintaining the social system.

Mental States

Conditions of consciousness or mind, such as thoughts, feelings, beliefs, desires, and intentions.

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The physical manifestation or representation of a concept, value, or entity in material or tangible form.

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A philosophical perspective that emphasizes individual freedom, choice, and responsibility, often associated with the human condition and existence.