Multiple Choice
The risk-free rate of return is 2% while the market rate of return is 12%.Parson Company has a historical beta of .85.Today, the beta for Delta Company was adjusted to reflect internal changes in the structure of the company.The new beta is 1.38.What is the amount of the change in the expected rate of return for Delta Company based on this revision to beta?
A) 8.5%
B) 10.5
C) 12.2%
D) 14.0%
Correct Answer:
Verified
Correct Answer:
Verified
Q43: Beta is more useful in explaining an
Q46: Market return is the average return on
Q53: Which of the following guidelines are appropriate
Q55: Studies have shown that investing in different
Q64: What is the expected return on a
Q64: OKAY stock has a beta of 0.73.
Q69: It is relatively easy to obtain the
Q76: Investors are rewarded for assuming<br>A) total risk.<br>B)
Q90: The Franko Company has a beta of
Q109: A portfolio that offers the lowest risk