Question

Stocks A, B, and C have identical risks. Stock A earns an annual return of 9.9 percent as compared to 9.6 percent returns on stocks B and C. Given this, you can correctly assume that:
A. Stock A is overpriced.
B. the market return is 9.75 percent.
C. Stock A represents the smallest-sized firm.
D. Stock A has a positive excess return.
E. Stocks B and C represent firms that are in the process of merging.

Answer

This answer is hidden. It contains 15 characters.