Which One of the Following Stocks Has the Highest Expected

question 11

Multiple Choice

Which one of the following stocks has the highest expected risk premium?
$\begin{array}{lcr}\text { Stock}& \text { Standard deviation }&\text { Beta }\\\text { A } & 148 & 1.36 \\\text { B } & 21 & .98 \\\text { C } & 34 & 1.02 \\\text { D } & 8 & 1.18\\\text { E }&17&1.27\end{array}$

• A)A
• B)B
• C)C
• D)D
• E)E

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Definitions:

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, and therefore can be combined.

Simplify

To make something less complicated or easier to understand, often by reducing it to its basic components.

Collect Like Terms

The process of simplifying mathematical expressions by combining terms with the same variables.

Collect Like Terms

In algebra, this means to combine terms that have the same variable parts into a single term.