You are considering investing in one of the these three stocks: If you are a strict risk minimizer, you would choose Stock If it is to be held in isolation and Stock if it is to be held as part of a well-diversified portfolio. a) C;B. b) A; A. c) C:A d) A; B. Which of the tollowing statements is COGRECT abo. ificient markets? The Erficient Markets Hypothesih suggests that the market does not price Htocks faily: hence, managens stould make dechlons based on the premise that firms' stocks are undervalued or ovenvilued b) An individual who has information about past stock prices would be able to profit from this information if weak-form market efficiency exists. An individual who has ibide information about a publicly traded company should be able to profit from this information if strong-form market efficiency exists. a) For the Efficient Markets Hypothesis to hold true, every individual investor must be "rational". e) Semistrong-form market efficiency means that stock prices reflect all public, but not necessarily all private, information. A company is expected to have free cash flows of 30.75 mitlion next year. The weihhted average cost of capital is WACC =10.5%, and the expected constant growth rate ig=6.4%. The company has $2 million in short-term investments, $2 milion in debt, and 1 million shares. What is the stock's current intrinsic stock price