Which one of the following is the best example of an event related to an expected return?

Select one:

a. An announcement that a firm will meet its sales projections

b. A market decline due to increased tensions in the world

c. A news release that a firm is going to be acquired at a premium

d. A sudden increase in the inflation rate

Dividend-payout ratio can be best defined as

Select one:

a. percentage of profits paid out as dividends.

b. percentage of profits paid out as dividends to shareholders.

c. percentage of profits paid out as dividends to debt holders.

d. percentage of profits used to buy back their own shares.

A share has an expected return of 10%, the risk-free rate is 3%, and the market risk premium is 5%. If the share is correctly priced, what must the beta of this share be?

Select one:

a. 1.4

b. 3.5

c. 0.7

d. 2.2