Consider the Single-Factor APT

question 10

Multiple Choice

Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of

• A) 0.67.
• B) 1.00.
• C) 1.30.
• D) 1.69.
• E) 0.75.

Recognize the importance of having a written will and the consequences of dying intestate.

Understand the role and selection of legal documents and representatives in estate planning.

Grasp the concept of building and transferring an estate as parts of estate planning.

Understand the implications of estate planning for married and unmarried couples, including legal rights and deductions.

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Definitions:

Increased By

A term describing how an amount is made larger or expanded in size, volume, number, or extent.

Reduction

A decrease in the amount, size, or intensity of something, often referring to prices, costs, or risks.

Percent Change

The measure of how much a quantity has grown or shrunk, represented as a percentage of the original quantity.

Unit Price

The price attributed to an individual unit of a product or service.