Which One of the Following Stocks Is Correctly Priced If

question 28

Multiple Choice

Which one of the following stocks is correctly priced if the risk-free rate of return is 3.6% and the market rate of return is 10.5%?

• A)A
• B)B
• C)C
• D)D

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Definitions:

Larger Output

Refers to the increased production of goods or services by a company or economy.

Fixed Amounts

Predetermined quantities or sums that do not change over time or in response to varying conditions.

Trade by Bartering

A method of exchanging goods or services directly without using money.

Laissez-Faire

Laissez-faire is an economic philosophy advocating for minimal government intervention in the market, with transactions between private parties being free from tariffs, subsidies, and enforced monopolies.