Matthews Corporation Has a Beta of 1

question 43

Multiple Choice

Matthews Corporation has a beta of 1.2. The annualized market return yesterday was 13%, and the risk-free rate is currently 5%. You observe that Matthews had an annualized return yesterday of 17%. Assuming that markets are efficient, this suggests that

• A) bad news about Matthews was announced yesterday.
• B) good news about Matthews was announced yesterday.
• C) no news about Matthews was announced yesterday.
• D) interest rates rose yesterday.
• E) interest rates fell yesterday.

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Definitions:

Sartorius

A long narrow muscle of the thigh; the longest muscle of the body.

Duchenne's

Often referring to Duchenne muscular dystrophy, a genetic disorder characterized by progressive muscle degeneration and weakness.

Erb's

Refers to Erb's palsy, a condition caused by nerve damage around a baby's neck, which can lead to weakness or loss of movement in the arm.

Torticollis

A condition also known as "wry neck," where the head becomes twisted to one side due to muscular or skeletal issues.