The Risk Free Rate Is 2

question 101

Multiple Choice

The risk free rate is 2%.The expected rate of return on the market is 12%.Beta and the expected rate of return for four stocks are as follows.: ABC .8 , 10%; DEF 1, 12%; GHI 1.2 , 13%, and JKL 2, 22%.Which of these stocks should not be purchased?

• A)ABC
• B)DEF
• C)GHI
• D)JKL

Understand and identify different types of events including mutually exclusive and independent events.

Learn how to compute posterior probabilities using Bayes' theorem.

Calculate probabilities of events based on sample point probabilities.

Understand the concepts and methods involved in experimental research designs.

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Definitions:

International Specialization

The economic strategy where countries focus on the production and export of goods and services that they can produce most efficiently.

Full Employment

An economic condition where all available labor resources are being used in the most efficient way possible, typically signifying a very low unemployment rate.

Productive Efficiency

A state where an economy or firm produces goods or services at the lowest possible cost, using all resources effectively.

Production Possibilities Curve

A graph that shows the various combinations of outputs that a society can produce given the available factors of production and technology.