Author Question: The risk-free rate is 5, the beta of Stock A is 1.2, the beta of Stock B is 0.8, and the expected ... (Read 133 times)

azncindy619

  • Hero Member
  • *****
  • Posts: 562
The risk-free rate is 5, the beta of Stock A is 1.2, the beta of Stock B is 0.8, and the expected return on Stock A is 12.2. What is the expected return on Stock B?
 
  A) 8.4
  B) 9.2
  C) 9.8
  D) 11.0
  E) 12.2

Question 2

________ refers to how quickly information is reflected in the available prices for trading.
 
  A) Market efficiency
  B) Mechanical efficiency
  C) Informational efficiency
  D) Operational efficiency



chreslie

  • Sr. Member
  • ****
  • Posts: 307
Answer to Question 1

C

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

For a complete list of videos, visit our video library