Which One of the Following Shares Is Correctly Priced If

question 88

Multiple Choice

Which one of the following shares is correctly priced if the risk-free rate of return is 3.6% and the market rate of return is 10.5%?
$\begin{array}{l}\begin{array}{|l|l|l|}\hlineShare &Beta &\text { Expected Return }\\\hline \mathrm{A} & .85 & 9.2 \% \\\hline \mathrm{B} & 1.08 & 11.8 \% \\\hline \mathrm{C} & 1.68 & 15.3 \% \\\hline \mathrm{D} & .71 & 7.8 \% \\\hline \mathrm{E} & 1.45 & 12.3 \% \\\hline\end{array}\end{array}$

• A)A
• B)B
• C)C
• D)D
• E)E

---

Definitions:

Obesity Rate

The proportion of a population that is classified as obese, typically measured by body mass index (BMI) exceeding a specific threshold.

Sexual Behavior

Refers to actions or practices related to the expression of sexuality, including activities that lead to sexual gratification or reproduction.

Alfred Kinsey

A biologist and sexologist who conducted pioneering research on human sexuality, leading to the Kinsey Reports.

Bisexual Experiences

Encounters or activities that express or explore attraction to more than one gender.