XRCO has a beta of 1.7. The annualized market return yesterday was 13%, and the risk-free rate is currently 3%. You observe that XRCO had an annualized return yesterday of 20%. Assuming that markets are efficient, this suggests that
A) bad news about XRCO was announced yesterday.
B) good news about XRCO was announced yesterday.
C) no significant news about XRCO was announced yesterday.
D) interest rates rose yesterday.
E) interest rates fell yesterday.
Correct Answer:
Verified
Q38: In an efficient market the correlation coefficient
Q39: Banz (1981) found that, on average, the
Q40: Fama and French (1992) found that the
Q41: According to proponents of the efficient-market hypothesis,
Q42: XRCO just announced yesterday that its fourth
Q44: The Food and Drug Administration (FDA) just
Q45: Your professor finds a stock-trading rule that
Q46: Which of the following are investment superstars
Q47: Nicholas Manufacturing just announced yesterday that its
Q48: When Maurice Kendall first examined stock price
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents