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6.15. [2-S03:3] The beta for QRS Life Insurance Company is 0.4, while the beta for the life insurance industry is X. The risk-free rate of
6.15. [2-S03:3] The beta for QRS Life Insurance Company is 0.4, while the beta for the life insurance industry is X. The risk-free rate of interest is 4% and the market return is 14%. The expected return on QRS stock minus the expected return for the industry is 0.5%. Calculate X (A) -0.10 (B) 0.10 (C) 0.25 (D) 0.35 (E) 0.45
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