You Have the Following Data on the Securities of Three

question 84

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

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Definitions:

Resilience

The capacity to recover quickly from difficulties; emotional strength in facing adversity.

Temperamentally

Refers to the aspects of an individual's personality that are believed to be biologically based and relatively stable throughout life.

Environmental Stimulation

Exposure to a variety of experiences, situations, or substances in the environment that influence cognitive and physical development.

Extended Family Members

Relatives other than one's immediate family, such as grandparents, aunts, uncles, and cousins, who may or may not live in the same household.