Stock a Has a Required Return of 12

question 95

Multiple Choice

Stock A has a required return of 12%. Stock B has a required return of 15%. Assume a risk-free rate of 4.75%. Which of the following is a correct statement about the two stocks?

• A) Stock A is riskier.
• B) Stock B is riskier.
• C) The stocks have the same risk.
• D) We would need to know if the markets are efficient to answer this question.

Understand the concept of credential inflation and its influence on social inequality in Canada.

Explain how educational institutions maintain social equilibrium through the lens of Parsons's functionalism.

Describe the chilly climate phenomenon in higher education and its effects on participants.

Analyze gendered enrolment trends in education and their long-term impacts on the workforce.

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Definitions:

Production Possibilities Frontier (PPF)

A curve showing alternative combinations of goods that can be produced when available resources are used efficiently; a boundary line between inefficient and unattainable combinations.

Output Combination

An output combination refers to the mixture of different goods and/or services produced by an economy or firm within a certain period, highlighting the diversity in production.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Labor Productivity

The measure of economic output per unit of input, typically calculated as total output divided by the number of hours worked.