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

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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