The ________ is the intercept on the Security Market Line

A) prime rate
B) risk-free rate
C) market rate of return
D) beta

Answer: B

Business

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The PE ratio approach to valuing stock is especially useful for valuing

A) privately held firms. B) firms that don't pay dividends. C) both A and B of the above. D) neither A nor B of the above.

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Indicate whether the statement is true or false.

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