Question: Clipboard Font Alignment Number contra Format as table coll Styles Cells Ld H25 C H 36.8 A B E F Question 18 2 3 The

Clipboard Font Alignment Number contra Format as table coll Styles Cells Ld H25 C H 36.8 A B E F Question 18 2 3 The following are five IT stocks statistical profiles--the risk-free rate is 1.1% 4 5 201601-202012 FB AAPL AMZN NFLX GOOGL 6 Excess return (X) 22.0 37.7 34.7 17.6 7 Standard dev (N) 28.0 30.1 28.7 37.1 21.6 8 Sharpe ratio 0.75 1.22 1.17 0.96 0.76 19 Alpha (%) 0.0 0.8 0.5 1.0 0.1 10 Market beta 1.25 1.43 1.39 1.08 1.05 11 Size (SMS) beta 0.37 0.48 -0.52 -0.18 -0.42 12 B/M (HML) beta 0.34 -0.73 0.91 -0.91 -0.15 13 14 According to the statistics, which of the following statements regarding the five stocks is true? 15 16 A NFLX has the highest systematic risk 17 B AMZN has the highest firm specific risk 18 C AAPL has the steepest security characteristic line slope 19 D FB is the most underpriced stock per this factor model 20 21 Hint: Chapters 7 and 9. additional questions Additional Question 1 22 23 24 25 26 27 28 29 30 12 13 15 10 17 10 Ready Me

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