Exhibit 87
Use the Information Below for the Following Problem(S)
You

question 110

Multiple Choice

Exhibit 8.7
Use the Information Below for the Following Problem(S)
You expect the risk-free rate (RFR) to be 4 percent and the market return to be 10 percent. You also have the following information about three stocks.
$\begin{array}{ccccc}\text { Stock } & \text { Beta } & \begin{array}{c}\text { Current } \\\text { Price }\end{array} & \begin{array}{c}\text { Expected } \\\text { Price }\end{array} & \begin{array}{c}\text { Expected } \\\text { Dividend }\end{array} \\\hline \mathrm{A} & 1.5 & \$ 10 & \$ 11.50 & \$ 1.00 \\\mathrm{~B} & 1.1 & \$ 27 & \$ 30 & \$ 0.00 \\\mathrm{C} & 0.8 & \$ 35 & \$ 36 & \$ 1.50\end{array}$

-Refer to Exhibit 8.7.What is your investment strategy concerning the three stocks?

• A) Buy A and B, sell C.
• B) Sell A, B and C.
• C) Sell A and B, buy C.
• D) Buy A , B and C.
• E) Buy A and C , sell B.

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Definitions:

Elderly Patients

Individuals of advanced age, typically over the age of 65, receiving medical care or treatment.

Diagnostic Testing

Medical tests performed to aid in the diagnosis or detection of disease, injury, or other medical conditions.

Screening

The process of testing or examining individuals for the presence of diseases or conditions before symptoms are apparent.

Physical Therapy

A branch of rehabilitative healthcare that uses specially designed exercises and equipment to help patients regain or improve their physical abilities.