USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You expect the risk-free rate (RFR) to be 3 percent and the market return to be 8 percent. You also have the following information about three stocks.

-Refer to Exhibit 7.2. What is your investment strategy concerning the three stocks?

A) buy X and Y; sell Z
B) sell X, Y, and Z
C) sell X and Z; buy Y
D) buy X, Y, and Z
E) buy X and Z; sell Y