The markets in general are paying a 2% real rate of return. Inflation is expected to be 3%. ABC stock commands a 6% risk premium. What is the expected rate of return on ABC stock?
A) 2%
B) 5%
C) 8%
D) 11%
Answer: D
Business
You might also like to view...
Franchises are privileges granted by a business to sell goods and services under specified conditions
Indicate whether the statement is true or false
Business
Which sentence is expressed correctly?
A) These companies will submit bids for the construction project: MEP Associates, Clear Engineering, and TechSolutions. B) Four of the most devastating natural disasters are: earthquakes, landslides, volcanic eruptions, and tsunamis. C) Promotions will be given to: Julie Baker, Mark Senti, and Wade Kingsley.
Business