Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.8% and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return?
A) 14.8%
B) 15.6%
C) 16.4%
D) 17.2%
Answer: C
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If a company wanted to make sure an integrated approach is used in marketing communications, then the best approach would be to:
A) hire a full-service agency B) use a boutique agency C) use a media service company to buy media time, but do the creative with freelancers D) utilize different companies for each aspect of the advertising campaign
Distinguish between the advantages and disadvantages of virtual teams?
What will be an ideal response?
Prudence Company incurs both fixed and variable production costs. Assuming that production is within the relevant range, if volume goes up by 28%, then the total fixed costs would ________
A) increase by 28% B) remain the same C) increase by an amount less than 28% D) decrease by 28%
Thomas purchased an annuity for $20,000 that will pay him $500 per month for ten years. What amount should Thomas include in his income each year?
A. $4,000 B. $6,000 C. $0 D. $2,000