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:

Business Units

Separate operational entities within a corporation, each having distinct tasks and objectives, contributing to the overall strategy of the company.

Shared Service Units

Divisions within a company that provide services to multiple departments, improving efficiency and reducing costs.

Cost Centre

A segment of an organization where costs can be accumulated, but which does not directly generate revenue.

Standardised Services

Services that are provided in a consistent manner every time, ensuring uniform quality and experience across all service points.