Assume That a Security Is Fairly Priced and Has an Expected

question 106

Multiple Choice

Assume that a security is fairly priced and has an expected rate of return of 0.13.The market expected rate of return is 0.13 and the risk-free rate is 0.04.The beta of the stock is ___.

• A)1.25.
• B)1.7.
• C)1.
• D)0.95.s.
• E)none of the above.

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Definitions:

Deviation Bar Charts

Bar charts that identify positive and negative values, or winners and losers.

Paired Bar Charts

A graphical display of information using two bars side by side at various heights to compare two sets of data.

Geographic Regions

Specific areas or locations defined by natural or artificial boundaries, often characterized by specific climatic conditions, topography, or cultural attributes.

Specific Numbers

Exact figures or quantities that are mentioned or used to quantify something.