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Basic Question 5 of 11
Suppose the DiscMarc Corporation's common stock has a return of 10%. Assume the risk-free rate is 5%, the expected market return is 8%, and no unsystematic influence affected DiscMarc's return. The beta for DiscMarc is ______.
B. 1.67
C. 3.33
A. 1.00
B. 1.67
C. 3.33
User Contributed Comments 5
| User | Comment |
|---|---|
| mattg | Actual return aka "return" means "expected return" |
| johntan1979 | Woah there... not sure where you got that but ACTUAL is NOT the same as EXPECTED return. |
| jonan203 | you cannot predict actual returns, EVER! there are a billion, zillion compliance regulations regarding the statement you just made mattg. |
| etmzkn | @johntan1979: like your comments. keep your style. and also thanks for contributions. generally i skip most and read yours first. |
| khalifa92 | mattg is probably trolling. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret beta
CFA® 2025 Level I Curriculum, Volume 2, Module 2.