Question
According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 4.2% and the market risk premium is 8.7%.
According to the Bloomberg Network (a Financial TV channel), the current return on the U.S T-bill is 4.2% and the market risk premium is 8.7%. Given this news, in the table below, the only stock that is correctly priced is:
| Stock | Beta | Expected Return | ||||
| A | .83 | 7.89 | % | |||
| B | 1.58 | 12.71 | ||||
| C | 1.40 | 16.38 | ||||
| D | 1.39 | 12.02 | ||||
| E | .95 | 8.65 | ||||
Multiple Choice
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Stock D
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Stock B
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Stock E
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Stock C
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Stock A
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Fanatical Prospecting The Ultimate Guide To Opening Sales Conversations And Filling The Pipeline By Leveraging Social Selling Telephone Email Text And Cold Calling
Authors: Jeb Blount, Mike Weinberg
1st Edition
1119144752, 978-1119144755
