Vera Paper's Stock Has a Beta of 1

question 9

Multiple Choice

Vera Paper's stock has a beta of 1.40,and its required return is 12.00%.Dell Dairy's stock has a beta of 0.80.If the risk-free rate is 4.75%,what is the required rate of return on Dell's stock?

• A)8.45%
• B)8.67%
• C)8.89%
• D)9.12%

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Definitions:

Slave-Labor System

A system where individuals are forced into labor without pay, typically under harsh conditions.

Slaveholders

Individuals or entities that owned slaves, historically participating in the practice of human bondage and forced labor, a widely condemned violation of human rights.

Nonslaveholders

Individuals or households in slaveholding societies that did not own slaves, often due to economic reasons, ethical beliefs, or both.

Upper-Class

The social group at the top of a societal hierarchy that holds the highest status and often wealth, typically exerting significant power and influence.