The Historical Returns Data for the Past Three Years for Stock

question 60

Multiple Choice

The historical returns data for the past three years for Stock B and the stock market portfolio are: Stock B: 24%, 0%, 24%, Market Portfolios: 10%, 12%, 20%. If the risk-free rate is 4%, calculate the market risk premium.

• A) 18.1%
• B) 14%
• C) 10%
• D) None of the above

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Definitions:

Wholesaling Functions

Activities involved in selling goods in large quantities at lower prices to retailers or other businesses for resale.

Customer Service

The support and assistance provided by a company to its customers, often aimed at enhancing satisfaction, resolving issues, and fostering loyalty.

Dependability

The quality of being trustworthy and reliable, essential for establishing long-term relationships in personal and professional contexts.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer, involved in the delivery of a product or service from the supplier to the customer.