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NEW QUESTION: 1
A. Option A
B. Option B
C. Option D
D. Option C
Answer: B
NEW QUESTION: 2
An asset that is plotted above the security market line (SML) is
A. under priced.
B. either over priced, correctly priced, or under priced.
C. over priced.
Answer: A
Explanation:
An asset that is plotted above the security market line (SML) is under priced because the expected rate of return on the security would be higher than that dictated by the beta of the stock. Its risk is too low to justify the high return.
NEW QUESTION: 3
If the most likely duration of an activity is five weeks, the best-case duration is two weeks, and the worst- case duration is 14 weeks, how many weeks is the expected duration of the activity?
A. One
B. Seven
C. Five
D. Six
Answer: D
Explanation:
Explanation/Reference:
Explanation:
E = (a + 4m + b) / 6
(2+ (4*5) +14)=36 /6 =6
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