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

question 67

Multiple Choice

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

Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%.
-Which firm has the most total risk?

• A)Eenie
• B)Meenie
• C)Miney
• D)Moe

---

Definitions:

James Tobin

An American economist known for his work on the links between financial markets and economic decisions, especially the Tobin tax concept.

Long-run Value

The intrinsic value of an asset or company based on fundamental analysis, considering its potential for growth and profitability over an extended period.

Intrinsic Value

Intrinsic value is the perceived or calculated true value of an asset, investment, or company, based on fundamental analysis rather than current market price.