Research shows:

A) that job satisfaction and the financial performance of an organization are unrelated.
B) good financial performance in an organization promotes high levels of job satisfaction.
C) employee job satisfaction has no effect on financial performance.
D) absenteeism is higher than average in companies with good financial performance.

B

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The risk-free rate of return is 2.2 percent, the expected market return is 11 percent, and the beta for Solstice, Inc. is 1.12. What is Solstice's required rate of return?

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