Question text Fallweather Enterprises stock has an expected return of 8.9 percent and a beta of 0.66. The market return is 11.4 percent and the risk-free rate is 3.7 percent. This stock is because the CAPM return for the stock is percent. Select one: a. Greatly undervalued; 7.20 b. Slightly overvalued; 8.78 c. Slightly undervalued; 8.78 d. Greatly overvalued; 11.4 e. Priced correctly; 8.9

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.