Emily and her family have invested in a company that develops lands and real estate projects. Each of them chooses different financial securities issued by the company as follows. This company, unfortunately filed for bankruptcy in 2021 in federal court and liquidated its assets in 2022. In the bankruptcy proceeding, who had the highest priority to claim the company's assets?

Emily owns the preferred stocks

Emilys mother owns common stocks

Emilys father invests in the subordinated bonds.

Emilys sister invests in the senior unsecured debts

Emilys sister

Emily

Emilys mother

Emilys father

Apply Capital Asset Pricing Model and Securities Market Line to determine which one of the following statements is correct?

Period: 2017.1 - 2021.12 Treasury-bill S&P 500 Index

Average monthly return 0.0009 0.0080

Standard deviation of returns

Beta Coefficient

Ford has a systematic risk smaller than the market portfolio because it has a standard deviation of the returns less than one

Ford is plotted to the left of the S&P 500 index in the SML graph

Ford generates positive alpha for its shareholders during 2017 and 2021

Fords common stocks are fairly priced during 2017 and 2021 according to CAPM.