You are considering an investment in Citizens Bank Corp The firm has a beta of 1.6. Currently, U.S
Treasury bills are yielding 2.75% and the expected return for the S & P 500 is 14%.
What rate of
return should you expect for your investment in Citizens Bank?
A) 15.39% B) 11.15% C) 20.75% D) 16.75%
C
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One Friday a few years ago, the Big Mac Index suggested that the yen was overvalued relative to the dollar by 70%
When currency markets opened on the following Monday, anyone using the Big Mac Index would conclude that the yen was only 20% overvalued relative to the dollar. What is the most likely explanation for this? A) Japan's Central Bank acted to prop up the yen. B) Inflation in Japan suddenly spiked upward. C) McDonald's headquarters stopped hedging. D) McDonald's Japan reduced the yen price of a Big Mac. E) McDonald's Japan increased the yen price of a Big Mac.
During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?
A) idea generation B) idea screening C) business analysis D) concept development and testing E) product development and testing