The Market Return Is 11% and the Risk Free Rate

question 36

Multiple Choice

The market return is 11% and the risk free rate is 4%. Mammoth Inc. has a market beta of 1.2, a SMB beta of −.78, and a HML beta of −1.2. The risk premium on HML and SMB are both 3%. If the single factor model generates a regression coefficient of 1.2, using the Fama-French Three Factor Model, what is the different in returns between the Three-Factor model and the single factor model expected returns on Mammoth Inc. stock?

• A) 5.66%
• B) 5.94%
• C) 11.3%
• D) 16.3%

Explain the concept of hypothetical and abstract thinking in the formal operations stage.

Compare and contrast Piaget's and Vygotsky's theories of cognitive development.

Understand the role of social interactions and cultural context in cognitive development according to Vygotsky.

Describe the concept of adolescence egocentrism, the personal fable, and the imaginary audience.

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