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:

Neat Pile

A carefully arranged stack of items where everything is orderly placed.

Sentence Variety

The practice of varying the length, structure, and type of sentences to enhance the readability and interest of writing.

Affirmative Action

Policies or measures taken to increase the opportunities for underrepresented groups in various areas, including education and employment, as a way to address past inequalities.

Social Barriers

Obstacles that exist within societies, limiting individuals' opportunity and access to resources, rights, and freedoms based on class, ethnicity, gender, or disability.