-If the Risk-Rate Is 5

question 54

Multiple Choice

$\begin{array}{c}\begin{array}{c}\underline{\text {State of the economy}}\\\text {Boom}\\\text {Normal}\\\text {Recession}\end{array}\begin{array}{c}\underline{\text {Probability}}\\.3\\.4 \\.3 \end{array}\begin{array}{c}\underline{\text {Stock F}}\\65 \% \\14 \% \\-50 \%\end{array}\end{array}$

-If the risk-rate is 5.8 percent, what is the risk premium of Stock F?

• A) 15.9%
• B) 5.25%
• C) 4.87%
• D) 4.30%
• E) 5.06%

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Definitions:

Nipple

A small projection from the breast or mammary glands through which milk is delivered to an infant.

Cheek

The fleshy part of the face below the eye and between the nose and ear, used for expressing emotions and tasting food.

Product Departmentation

An organizational structure method where a business is divided into smaller groups based on its products or product lines.

Functional Departmentation

The process of grouping organizational activities into separate units or departments based on functions such as marketing, finance, and human resources.