You Have Gathered the Following Information Concerning a Particular Investment

question 72

Multiple Choice

You have gathered the following information concerning a particular investment and conditions in the market. According to the Capital Asset Pricing Model, the required return for this investment is

• A)8.85%.
• B)11.48%.
• C)13.98%.
• D)14.85%.

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Definitions:

Percentiles

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Stanines

Derived from the term “standard nines,” this is a standardized score frequently used in schools. Often used with achievement tests, stanines have a mean of 5 and a standard deviation of 2, and range from 1 to 9.

T-scores

Standardized scores with a mean of 50 and a standard deviation of 10, used to compare an individual's score against a normative sample.

Grade Equivalents

A metric used in education to compare a student's test score with the average scores of students in other grades.