-Suppose the Above Asset Is Observed in the Market Trading

question 7

Multiple Choice

$\begin{array}{|l|l|l|l|}\hline \text { Factor } & {\left[\mathrm{E}\left(\mathrm{R}_{\mathrm{M}}\right) -\mathrm{R}_{\mathrm{F}}\right) } & \mathrm{SMB} & \mathrm{HML} \\\hline \text { Sensitivity } & \mathrm{b}_{\mathrm{i}}=1.75 & \mathrm{~s}_{\mathrm{i}}=-0.80 & \mathrm{~h}_{\mathrm{i}}=0.60 \\\hline \text { Risk premium } & 18.5 \% & 5.25 \% & 0.50 \% \\\hline\end{array}$
-Suppose the above asset is observed in the market trading with an expected return of 18%.What strategy would you suggest to profit from this situation,assuming the CAPM was the correct pricing model and the risk-free rate was 8%?

• A) buy the asset
• B) short-sell the asset
• C) buy the risk-free asset
• D) sell the market portfolio

Comprehend the management by objectives (MBO) process and its importance in organizational performance.

Identify the motivational aspects of goal setting in organizational behavior.

Recognize the attributes and moderators that influence the effectiveness of goals in organizations.

Understand how goal setting influences individual and team performance in various contexts, including cultural and ethical considerations.

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Definitions:

Focus Group Research

Involves gathering a small, diverse group of people to discuss and provide feedback on a specific topic or product, facilitating qualitative data collection.

Interview Research

A qualitative research method involving direct, structured or semi-structured conversations to gather insights or data.

Social Status

An individual's position or rank within the social hierarchy, determined by wealth, occupation, education, and other factors.

Health Services

A broad range of medical or health-related services aimed at maintaining, enhancing, or managing the health of individuals.