Use the Following Information to Answer the Question(s) Below

question 55

Multiple Choice

Use the following information to answer the question(s) below.
Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New news arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:

-Which of the following stocks represent selling opportunities?
1) Taggart Transcontinental
2) Rearden Metal
3) Wyatt Oil
4) Nielson Motors

• A) 1 only
• B) 1 & 2 only
• C) 2 & 3 only
• D) 2 & 4 only

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Spending by the government on goods, services, and projects to fulfill its various functions, such as infrastructure, education, and defense.

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Payments made without any corresponding contribution of goods or services, such as welfare benefits or grants.

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The government's estimate of revenue and expenditure for a specific fiscal period, reflecting its financial priorities and plans.

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Funds allocated by a national government to maintain and equip its military forces, including costs related to personnel, operations, and procurement of weaponry.