FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 104

Stocks A and B have the following data. Assuming the stock
market is efficient and the stocks are in equilibrium, which of the
following statements is CORRECT?
A B
Price $25 $40
Expected growth 7% 9%
Expected return 10% 12%
Correct Answer:
Question 22
Stocks X and Y have the following data. Assuming the stock
market is efficient and the stocks are in equilibrium, which of
the following statements is CORRECT?
X
Y