You Have the Following Data on the Securities of Three

question 7

Multiple Choice

You have the following data on the securities of three firms: If the risk-free rate last year was 3%,and the return on the market was 11%,which firm had the best performance on a risk-adjusted basis?

• A) Firm A
• B) Firm B
• C) Firm C
• D) There is no difference in performance on a risk-adjusted basis

---

Definitions:

Fibrinogen

A plasma protein produced by the liver and converted by thrombin into fibrin during blood clotting.

Mucus

Viscous secretion produced by and covering mucous membranes; lubricates mucous membranes and traps foreign substances.

Prostate Gland

A gland in the male reproductive system that produces a fluid component of semen.

Secretions

Substances produced and released by cells or glands, which serve various functions in the body, such as lubrication, digestion, and signaling.