FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 94

Finance 534 week 5 quiz 4
Question 1
Assume that in recent years both expected inflation and the
market risk premium (rM
− rRF) have declined. Assume also that all stocks have positive betas.
Which of the following would be most likely to have occurred as a result
of these changes?
Answer
Question 2
Assume that the risk-free rate is 5%. Which of the following
statements is CORRECT?
Question 3