Exhibit 14 -Refer to Exhibit 14

question 14

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.What is the required rate of return for Stock X based on the capital asset pricing model (CAPM) ?

• A) 15.5%
• B) 17.3%
• C) 21.3%
• D) 26.5%
• E) 30.5%

---

Definitions:

Axon Terminal

The end part of an axon that makes synaptic connections with another nerve cell or with an effector cell.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.

Synapse

The point of contact between two neurons through which electrical or chemical signals are relayed from one neuron to the other.

Synaptic Space

The small gap at the junction between neurons, through which neurotransmitters are released to facilitate neuronal communication.