Asset A, Which Has an Expected Return of 12% and a Beta

question 191

Multiple Choice

Asset A, which has an expected return of 12% and a beta of 0.8, plots on the security market line. Which of the following is false about Asset B, another risky asset with a beta of 1.4?

• A) If the market is in equilibrium, Asset B also plots on the SML.
• B) If Asset B plots on the SML, then Asset B and Asset A have the same reward to risk ratio.
• C) Asset B has more systematic risk than both Asset A and the market portfolio.
• D) If Asset B plots on the SML with an expected return = 18%, then the risk-free rate must be 4%.
• E) If Asset B plots on the SML with an expected return = 18%, the expected return on the market must be 15%.

Identify the tasks and functions of paralegals within different business forms, especially in sole proprietorships.

Distinguish between various forms of law firm organization, such as sole proprietorships, partnerships, and professional corporations.

Understand the concept of personal assets and their relevance to business and legal practices.

Grasp the role of different types of attorneys within a law firm, including associate attorneys, staff attorneys, and partners.

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