Asset A has an expected return of 22% and a beta of 1.8. The expected market return is 14%. What is the risk-free rate?

Multiple Choice

• 3.0%

• 6.0%

• 1.2%

• 4.0%

• 0.6%

Which of the following is implied by the evidence regarding market efficiency? Multiple Choice Insiders cannot make money from their private information. Prices in well-organized capital markets are unfair. O O Prices don't respond rapidly to new information. It is difficult to predict future price movements based on public information. There is a simple way to identify mispriced stocks when they exist