The expected return/beta relationship is used
A)by regulatory commissions in determining the costs of capital for regulated firms.
B)in court rulings to determine discount rates to evaluate claims of lost future incomes.
C)to advise clients as to the composition of their portfolios.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

The expected return/beta relationship is used for all of the options mentioned in the question. It is used by regulatory commissions to determine the costs of capital for regulated firms, by courts to determine discount rates for lost future incomes, and by advisors to recommend portfolio composition.

The Expected Return/beta Relationship Is Used