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

question 67

Multiple Choice

Use the following information to answer the question(s) below

Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%.
-Which firm has the most total risk?

• A)Eenie
• B)Meenie
• C)Miney
• D)Moe

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Definitions:

Classification Table

A systematic arrangement of data in rows and columns, typically used to organize and categorize information such as types or characteristics.

Magma Cooled

The process by which magma loses heat and solidifies to form igneous rocks, typically beneath the Earth's surface.

Dissolved Gas

Gas that is mixed in and held in solution by a liquid.

Diorite

A medium- to coarse-grained, intermediate-composition igneous rock; the phaneritic equivalent of andesite.