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Question
Which one of the following stocks is correctly priced according to CAPM if the risk-free rate of return is 3.4 percent and the market risk premium is 7.4 percent?
| Stock | Beta | Expected Return | |||
| A | .87 | .096 | |||
| B | 1.09 | .102 | |||
| C | 1.62 | .146 | |||
| D | .98 | .107 | |||
| E | 1.16 | .139 | |||
A) A
B) B
C) C
D) D
E) E
Answer
This answer is hidden. It contains 219 characters.
Related questions
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B) general partnerships.
C) limited partnerships.
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C) external legal counsel
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Q:
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B) growth rate of the firm.
C) gross profit per unit produced.
D) market value per share of outstanding stock.
E) total sales.
Q:
A partnership with four general partners:
A) distributes profits based on percentage of ownership.
B) has an unlimited partnership life.
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D) limits each partner's personal liability to 25 percent of the partnership's total debt.
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Q:
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A) the receipt of tax-free income.
B) the partner's active participation in the firm's activities.
C) the lack of any potential financial loss.
D) the daily control over the business affairs of the partnership.
E) the partner's maximum loss is limited to their capital investment.
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Which one of the following statements concerning a sole proprietorship is correct?
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B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company.
Q:
Which one of the following questions is least likely to be addressed by financial managers?
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B) Should customers be given 30 or 45 days to pay for their credit purchases?
C) Should the firm borrow more money?
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E) How much cash should the firm keep on hand?
Q:
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A) how many shares of stock to issue.
B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
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Q:
The date on which a shareholder is officially listed as the recipient of stock rights is called the:
A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.