Business
Business, 17.04.2020 23:02, TwentyOnePawPrints21

Music Doctors has a beta of 2.25. The annualized market return yesterday was 12%, and the risk-free rate is currently 4%. You observe that Music Doctors had an annualized return yesterday of 15%. Assuming that markets are efficient, this suggests that

A) no news about Music Doctors was announced yesterday.
B) bad news about Music Doctors was announced yesterday.
C) interest rates fell yesterday.
D) good news about Music Doctors was announced yesterday.
E) interest rates rose yesterday.

answer
Answers: 1

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Music Doctors has a beta of 2.25. The annualized market return yesterday was 12%, and the risk-free...

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