You have been scouring The Wall Street Journal looking for stocks to add to your (large) portfolio. The table presents data that you have collected on four stocks that look promising
You have calculated the return that you anticipate earning from each stock along with its beta. Which of the four securities should you add to your portfolio? (Assume you must choose just one.) Assume the risk-free rate is 7.00% and the market risk premium is 2.00%.
Stock Anticipated Return Beta
A 9.01% 1.70
B 7.06% 0.00
C 8.74% 0.87
D 11.50% 2.50
A) Stock A
B) Stock B
C) Stock C
D) Stock D
B
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When a company discounts an interest-bearing note at a bank with recourse:
a. The company is assured payment at maturity. b. The company will receive the full amount of the note plus interest. c. The company has a contingent liability from the time the note is discounted until its maturity date. d. The bank assumes the credit risk on non-payment at the maturity date.
Which statement best reflects the issues associated with the computation of diluted earnings per share?
A) Diluted earnings per share represent the potential impact of all shares of common stock. B) When presenting comparative financial statements, the impact of convertible bonds must be included for both years. C) Common stock options are considered dilutive when the average market price is greater than the option price. D) The impact on the denominator is always the determinate of whether or not to use diluted earnings per share.
A column named TIMESTAMP is maintained in the data dictionary and is included in the USER_DEPENDENCIES view.
Answer the following statement true (T) or false (F)
Use case modeling represents the ________ of a system
A) behavior B) condition C) technology D) heart and soul