Exhibit 92
Use the Information Below for the Following Problem(S)
Consider

question 24

Multiple Choice

Exhibit 9.2
Use the Information Below for the Following Problem(S)
Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas) .
$$\begin{array} { c c c } \text { Stack } & \text { Factor 1 Londine } & \text { Factor } 2 \text { Londing } \\\hline X & - [ .55 & 1.2 \\Y & - [ .10 & 0.85 \\Z & 0.35 & 0.5\end{array}$$
The zero-beta return (??) = 3%, and the risk premia are ?? = 10%, ?? = 8%. Assume that all three stocks are currently priced at $50.
-Refer to Exhibit 9.2.If you know that the actual prices one year from now are stock X $55,stock Y $52,and stock Z $57,then

• A) stock X is undervalued, stock Y is undervalued, stock Z is undervalued.
• B) stock X is undervalued, stock Y is overvalued, stock Z is overvalued.
• C) stock X is overvalued, stock Y is undervalued, stock Z is undervalued.
• D) stock X is undervalued, stock Y is overvalued, stock Z is undervalued.
• E) stock X is overvalued, stock Y is overvalued, stock Z is undervalued.

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Definitions:

Postoperative Exercises

Physical activities recommended after surgery to aid in recovery, promote healing, and prevent complications.

Pain Scale

A tool used in medical assessments to measure and quantify pain intensity, facilitating effective pain management strategies.

Femoral Peripheral Nerve Block

A type of regional anesthesia involving an injection of medication near the femoral nerve to block pain in a specific area of the leg.

Total Knee Arthroplasty

A surgical procedure to replace the damaged surfaces of the knee joint with artificial parts, to relieve pain and restore function.