Use the Following Information to Answer the Question(s) Below

question 48

Multiple Choice

Use the following information to answer the question(s) below.

Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New information arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:



-Which of the following stocks represent buying opportunities?
1.Taggart Transcontinental
2.Rearden Metal
3.Wyatt Oil
4.Nielson Motors

• A)1 only
• B)1 and 2 only
• C)2 and 3 only
• D)2 and 4 only

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Definitions:

CourseHours Field

A database or software field specifically designed to record or track the number of hours dedicated to a course.

Data Type

The characteristic of a variable or data element that determines what kind of value it can hold, such as integer, real, boolean, or string.

Input Mask

A method to enforce the format of the input by setting predefined criteria, ensuring data is entered in a specific format.

Compacting Database

The process of reorganizing a database to reclaim unused space and optimize performance.