You and a Friend Were in Line for a Movie

question 23

Multiple Choice

You and a friend were in line for a movie when you noticed the woman in front of you sneezing and coughing. Both of you were equally exposed to the woman's virus, but over the next few days, only your friend acquired flu-like symptoms and was ill for almost a week before recovering. Which one of the following is a logical explanation for this?

• A) Your friend had antibodies to that virus.
• B) You had an immunological memory of that virus.
• C) Your friend had an autoimmune disorder.
• D) Your friend had allergies.

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Definitions:

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Constant Growth DDM

A valuation model for stocks that assumes dividends grow at a constant rate in perpetuity, used to calculate the present value of future dividend payments.

Intrinsic Value

The true, inherent, or fundamental value of an asset, based on both tangible and intangible factors, as opposed to its market price.