Exhibit 14 -Refer to Exhibit 14

question 10

Multiple Choice

Exhibit 14.11
Use the Information Below for the Following Problem(S)
$\begin{array}{lcc}\text { Investment } & \text { Beta } & \text { Analyst's Estimated Return } \\\hline \text { Stock } \mathrm{X} & 2.3 & 15.5 \% \\\text { Stock } \mathrm{Y} & 1.2 & 13.6 \% \\\text { Market Portfolio } & 1.0 & 11.5 \%\end{array}$

-Refer to Exhibit 14.11.Based on the analyst's estimated return and the stocks' betas the analyst should

• A) Sell both Stock X and Stock Y
• B) Sell Stock X and Buy Stock Y
• C) Buy Stock X and Sell Stock Y
• D) Buy both Stock X and Stock Y
• E) None of the above

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Definitions:

Transformation Process

The conversion of inputs into outputs, thus transforming raw materials, labor, and information into products or services.

Productivity Variables

Productivity variables are factors that influence the efficiency and effectiveness with which resources are converted into outputs, including technology, labor skills, and management practices.

Operations Managers

Specialists tasked with supervising, devising, and regulating the processes involved in manufacturing and altering business tasks in the production of goods or services.