Author Question: The required return on a security is 10, the risk-free rate is 5, and the return on the market is ... (Read 48 times)

MirandaLo · **on:** Jul 10, 2018

The required return on a security is 10, the risk-free rate is 5, and the return on the market is 14. What is the beta of the firm?

A) 0.14
B) 0.55
C) 0.83
D) 1.00
E) 1.40

Question 2

Which of the following might occur when a firm increases its collection efforts?

A) a decline in accounts payable B) an increase in bad debts
C) an increase in inventory costs D) an increase in sales