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 134 times)

azncindy619

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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

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Answer to Question 1

C

Answer to Question 2

Answer: C



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