Multiple Choice
Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: −5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent.
Calculate the mean return for each company.
A) FC: 12 percent; MC: 6 percent
B) FC: 10 percent; MC: 12 percent
C) FC: 20 percent; MC: 32 percent
D) None of the options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q67: If two investments offer the same expected
Q68: According to the CAPM, all investments plot
Q69: If the correlation coefficient between Stock A
Q70: By combining lending and borrowing at the
Q71: Suppose you borrow at the risk-free rate
Q73: Assume the following data for a stock:
Q74: The beta of Treasury bills is<br>A)+1.0.<br>B)+0.5.<br>C)−1.0.<br>D)0.0.<br>
Q75: Suppose the beta of ExxonMobil is 0.65,
Q76: The correlation coefficient measures the<br>A)rate of return
Q77: Briefly explain the term market portfolio.