[Answered] One definition of return is: Indicate whether the statement is true or ...

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bucstennis@aim.com

Hero Member
Posts: 532

on: Jul 10, 2018

One definition of return is:

Indicate whether the statement is true or false.

Question 2

The expected return on the market is 8 and the risk free rate is 3. A stock has an expected return of 6.75 and a beta of 0.75. Where does the stock plot relative to the SML?

A) Below the SML
B) On the SML
C) Above the SML

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Marked as best answer by a Subject Expert

kbennett34

Sr. Member
Posts: 333

Reply #1 on: Jul 10, 2018

Answer to Question 1

Answer: TRUE

Answer to Question 2

B

bucstennis@aim.com

Member
Posts: 532

Reply 2 on: Jul 10, 2018

Thanks for the timely response, appreciate it

okolip

Member
Posts: 362

Reply 3 on: Yesterday

Excellent

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