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    Corporate Finance Study Set 11
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    Exam 11: Factor Models and the Arbitrage Pricing Theory
  5. Question
    Suppose the JumpStart Corporation's Ordinary Equity Has a Beta of 0.8.If
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Suppose the JumpStart Corporation's Ordinary Equity Has a Beta of 0.8.If

Question 43

Question 43

Multiple Choice

Suppose the JumpStart Corporation's ordinary equity has a beta of 0.8.If the risk-free rate is 4% and the expected market return is 9%, the expected return for JumpStart's common is:


A) 3.2%.
B) 4.0%.
C) 7.2%.
D) 8.0%.
E) 9.0%.

Correct Answer:

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