Assume the Following Data for a Stock: Beta = 0

question 66

Multiple Choice

Assume the following data for a stock: Beta = 0.5; Risk-free rate = 4%; Market rate of return = 12%; and Expected rate of return on the stock = 10%.Then the stock is:

• A)overpriced.
• B)underpriced.
• C)correctly priced.
• D)cannot be determined.

---

Definitions:

Licensed Software

Software that is legally provided to a user or organization under a license agreement, specifying the terms of use and distribution.

SCM Software Purchasing

Acquiring software tools used to automate and manage supply chain activities and processes more effectively.

Supply Chain Management System

A software solution that allows businesses to manage and optimize all supply chain activities from planning and procurement to logistics and fulfillment.

Fully Integrated

Systems or processes that are completely interconnected and functioning as a whole, offering seamless functionality across different components or aspects.