An analyst gathered the following data about three stocks

If the risk-free rate is 8% and the risk-premium on the market is 7%, is each stock undervalued, properly valued, or overvalued Stock A Stock B Stock C（）

单项选择题Which of the following is least likely to be an incentive for structuring a lease as an operating lease instead of a capital lease（）

A. The period of use is short relative to the overall life of the asset.
B. The lessee is in a high tax bracket and the lessor is in a low tax bracket.
C. Corporate bond covenants contain specific covenants relating to financial policies that the company must follow.

单项选择题Consider the following graph of the Security Market Line (SML). The letters X, Y, and Z represent risky asset portfolios. The SML crosses the y-axis at the point 0.07. The expected market return equals 13.0 percent. Based on the above information and graph provided, which of the following statements is CORRECT（）

A．The correct label for the x-axis is average risk.
B．Portfolio X’s required return is greater than the market expected return.
C．The expected return for Portfolio Z is equal to 14.8%.