Exhibit 7-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 122

Multiple Choice

Exhibit 7-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{ccccc}\text { Stock } & \text { Beta } & \text { Current Price } & \text { Expected Price } & \text { Expected Dividend } \\\hline \mathrm{X} & 0.8 & \$ 12.50 & \$ 13.10 & \$ 0.80 \\\mathrm{Y} & 1.1 & \$ 8.25 & \$ 9.76 & \$ 0.20 \\\mathrm{Z} & 2.1 & \$ 25.70 & \$ 30.04 & \$ 0.00\end{array}$
-Refer to Exhibit 7-4. What are the expected returns for stocks X, Y, and Z for the next period based on the above prices and dividends? $\begin{array}{lccc} & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\\hline \text { I. } & 4.8 \% & 18.3 \% & 16.9 \% \\\text { II. } & 10.7 \% & 17.5 \% & 14.4 \% \\\text { III. } & 11.2 \% & 20.7 \% & 16.9 \% \\\text { IV. } & 12.3 \% & 22.5 \% & 22.3 \% \\\text { V. } & 13.1 \% & 24.3 \% & 18.2 \%\end{array}$

• A) I
• B) II
• C) III
• D) IV
• E) V

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Definitions:

Synapses

Junctions between two neurons, allowing for the transmission of electrical or chemical signals across the neurons.

Axons

Long, slender projections of nerve cells that conduct electrical impulses away from the neuron's cell body.

Circuitry

The detailed arrangement or network of interconnected electronic or neural elements working together to perform specific functions.

Glutamate

A major excitatory neurotransmitter in the brain involved in learning and memory.