Consider Two Stocks, a and B

question 14

Multiple Choice

Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and a beta of 1.8. The expected market rate of return is 9% and the risk-free rate is 5%. Security ________ would be considered the better buy because ________.

• A) A; it offers an expected excess return of .2%
• B) A; it offers an expected excess return of 2.2%
• C) B; it offers an expected excess return of 1.8%
• D) B; it offers an expected return of 2.4%

Recognize appropriate uses of diagnostic tools like loopback plugs.

Grasp key processor specifications for optimal functionality.

Acquire strategies for efficiently troubleshooting hardware and software issues.

Implement best practices in part replacement and verification.

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Definitions:

Compound

Compound pertains to a substance made up of two or more elements chemically combined in fixed proportions.

Quantifier

In logic and mathematics, a term that specifies the quantity or numerical scope of individuals that a proposition applies to.

Atomic Open Sentence

A type of statement that contains one or more variables, which makes it capable of being true or false depending on the values of these variables.

Truth-functional Compound

A complex proposition whose truth value depends solely on the truth value of its components, determined by specific truth-functional operators.