Dinner Foods Stock Has a Beta of 1

question 66

Multiple Choice

Dinner Foods stock has a beta of 1.45 and an expected return of 13.43%. Edwards' Meals stock has a beta of .95 and an expected return of 10.27%. Assume that both stocks are correctly priced. Given this, the risk-free rate is ________% and the market rate of return is ________%.

• A)4.02; 11.53
• B)4.09; 12.35
• C)4.10; 11.53
• D)4.27; 10.59
• E)4.41; 10.25

Identify examples of illusory correlations and understand why they occur.

Understand the basic principles of experimental design, including independent and dependent variables.

Interpret research findings from various study designs with a critical perspective, especially regarding cause-and-effect relationships.

Distinguish between different types of experimental controls and their importance in research validity.

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