Computation of risk-adjusted required return

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Reference no: EM131980803

1. Computation of a risk-adjusted required return is best accomplished using

a) The dividend discount model

b) The price-earnings ratio

c) The market model beta

d) Momentum

e) Astrology

2. Which of the following are both TRUE and evidence of market efficiency?

a) Stock prices seem to anticipate merger outcomes

b) Earnings announcement have no lasting impact on stock prices

c) Stocks exhibit significant price momentum

d) Mutual fund managers tend to outperform market averages

e) Small stocks earn higher returns, on average

Reference no: EM131980803

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