Stock X and the "Market" Had the Following Returns During

question 2

Multiple Choice

Stock X and the "market" had the following returns during the last three years,and the same relative volatility is expected to exist in the future: The riskless rate is r_RF = 8%,and the expected return on the market is 12 percent.If equilibrium exists,what is the expected return on Stock X?

• A) -4%
• B) 8%
• C) 12%
• D) 14%
• E) 16%

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Definitions:

Mental Health Problems

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An approach in psychology that explains human behavior in terms of the role it plays in survival and reproduction, based on evolutionary biology principles.

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