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

question 17

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. If the expected return on the market is 11.5% and the risk-free rate of return is 4.5%, then what are the required rates of return for stocks X, Y, and Z based on the CAPM? $\begin{array}{lccc} & \mathbf{X} & \mathbf{Y} & \mathbf{Z} \\\hline \text { I. } & 4.8 \% & 18.3 \% & 16.9 \% \\\text { II. } & 7.2 \% & 20.7 \% & 22.3 \% \\\text { III. } & 10.7 \% & 17.5 \% & 14.4 \% \\\text { IV. } & 10.1 \% & 12.2 \% & 19.2 \% \\\text { V. } & 11.1 \% & 12.2 \% & 21.3 \%\end{array}$

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

Understand how to modify document formatting utilizing theme colors and layout options.

Understand the functionality of the Line and Paragraph Spacing arrow for adjusting spacing between paragraphs.

Comprehend the process of printing documents and the preliminary steps required before printing.

Know how to find and insert objects in a document, including the use of online resources.

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Definitions:

Advancing Years

A phrase referring to the process of aging or getting older, often associated with gaining experience and wisdom but also facing physical and cognitive changes.

Reaction Time

The amount of time it takes to respond to a stimulus.

Menstrual Period

The monthly shedding of the uterine lining in females of reproductive age, often simply referred to as a period.

Adult Careers

The progression and actions in one's professional life or occupation over the adulthood period.