Which One of the Following Shares Is Correctly Priced If

question 63

Multiple Choice

Which one of the following shares is correctly priced if the risk-free rate of return is 2.5% and the market risk premium is 8%?
$\begin{array}{l}\begin{array}{|l|l|l|}\hlineShare &Beta &\text { Expected Retum }\\\hline \mathrm{A} & .68 & 8.2 \% \\\hline \mathrm{B} & 1.42 & 13.9 \% \\\hline \mathrm{C} & 1.23 & 11.8 \% \\\hline \mathrm{D} & 1.31 & 12.6 \% \\\hline \mathrm{E} & .94 & 9.7 \% \\\hline\end{array}\end{array}$

• A)A
• B)B
• C)C
• D)D
• E)E

Define monopoly and its implications in the market according to antitrust laws.

Understand the legal considerations and ramifications of tying agreements and exclusive sales contracts.

Comprehend the specifics of laws addressing unfair trade practices and promotional allowances.

Identify different types of software applications and their uses.

---

Definitions:

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles.

Pituitary Gland

A small endocrine gland in the brain that produces hormones which regulate vital body functions and other endocrine glands.

Glutamate

An important neurotransmitter in the brain involved in learning, memory, and the regulation of the nervous system.

Excitatory Neurotransmitter

A type of neurotransmitter that promotes the generation of an electrical signal called an action potential in receiving neurons.