Stocks A,B,and C Have Identical Risks

question 63

Multiple Choice

Stocks A,B,and C have identical risks.Stock A earns an annual return of 9.9 percent as compared to 9.6 percent returns on stocks B and C.Given this,you can correctly assume that:

• A) Stock A is overpriced.
• B) the market return is 9.75 percent.
• C) Stock A represents the smallest-sized firm.
• D) Stock A has a positive excess return.
• E) Stocks B and C represent firms that are in the process of merging.

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Definitions:

Recruitment

The process by which new members join or are added to a population, often used in the context of ecological studies and workforce management.

Molecular Phylogenetics

A branch of phylogenetics that analyzes genetic, hereditary molecular differences, principally in DNA sequences, to gain information on an organism's evolutionary relationships.

Extinct Species

Species that no longer exist, with no living individuals left anywhere on Earth.

DNA Sequences

DNA sequences are the specific arrangements of nucleotides (adenine, thymine, cytosine, and guanine) on a strand of DNA that encode the genetic information of an organism.