Asset Y has a beta of 1.2. The risk-free rate of return is 6 percent, while the return on the market portfolio of assets is 12 percent. The market risk premium is ________.
A) 7.2 percent
B) 6.0 percent
C) 13.2 percent
D) 10 percent
B) 6.0 percent
You might also like to view...
With the ________, the consumer chooses the best brand on the basis of its perceived most important attribute
A) lexicographic heuristic B) conjunctive heuristic C) elimination-by-aspects heuristic D) availability heuristic E) representativeness heuristic
A production-oriented firm focuses on its internal capabilities
Indicate whether the statement is true or false a. True b. False
A multidivisional structure consists of a
A. decentralized structure with of a set of operating divisions organized along business, product, customer groups or geographic lines, and a central corporate headquarters that allocates resources, provides support functions, and monitors divisional activities. B. centralized structure combining corporate overhead with support functions. C. decentralized format of senior executives with large overhead staff to manage and control all the business lines. D. centralized structure that controls the coordination across the more diversified and complex functions within the organization. E. decentralized structure or divisional structure that monitors performance and allocates funding to those divisions wanting to grow.
The shareholders are the owners of the corporation and have direct control over its operation
Indicate whether the statement is true or false