Consider the Following Information on Stocks I and II

question 80

Multiple Choice

Consider the following information on Stocks I and II: The market risk premium is 8 percent,and the risk-free rate is 3.6 percent.The beta of stock I is _____ and the beta of stock II is _____.

• A)2.08; 2.47
• B)2.08; 2.76
• C)3.21; 3.84
• D)4.47; 3.89
• E)4.03; 3.71

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Definitions:

James Olds

A neuroscientist known for his discovery of the brain's reward system and its effects on behavior.

Applied Psychology

The use of psychological principles and theories to overcome problems in real-life situations, such as in business, education, or mental health.

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