A contract entered into by a minor is:

The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B has a beta of 1.29. This information implies that:

A) stock A is riskier than stock B and both stocks are fairly priced. B) stock A is less risky than stock B and both stocks are fairly priced. C) either stock A is underpriced or stock B is overpriced or both. D) either stock A is overpriced or stock B is underpriced or both. E) both stock A and stock B are correctly priced since stock A is riskier than stock B.

A buyer purchases a house for $300,000 and applies for a $250,000 loan. The buyer is asked to pay one discount point. How much money will the buyer have to pay?

a. $300 b. $250 c. $2,500 d. $3,000