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AAFM GLO_CWM_LVL_1 Exam - Topic 4 Question 17 Discussion

Is the Z Ltd. efficiently priced according to the CAPM by taking the above information?
B) Share price is lower and not efficiently priced
A) Share price is higher and efficiently priced
C) Share price is lower and efficiently priced
D) Share price is higher and not efficiently priced

AAFM GLO_CWM_LVL_1 Exam - Topic 4 Question 17 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 17
Topic #: 4
[All GLO_CWM_LVL_1 Questions]

Is the Z Ltd. efficiently priced according to the CAPM by taking the above information?

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Suggested Answer: B

by Tamar at May 04, 2022, 09:26 PM

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Yuriko
7 months ago
Wait, how can it be efficiently priced if it's lower?
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Hannah
8 months ago
Not sure about that, seems like a stretch to call it efficient.
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Rasheeda
8 months ago
CAPM says it should be higher, so I think it's not efficient!
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Willodean
8 months ago
I agree, it’s overpriced based on CAPM!
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Jolene
8 months ago
Share price is definitely higher, so not efficiently priced.
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Tresa
8 months ago
}
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Matthew
9 months ago
]
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Shaun
9 months ago
"Candidate 4: If the info changes only unsystematic risk, CAPM says price shouldn’t move; if it changes beta, then price would move."}
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Shaun
9 months ago
"Candidate 3: There are no numbers given here, so I can’t tell if the price is higher or lower."},
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Shaun
9 months ago
"Candidate 2: I remember a similar practice question about whether the stock is fairly priced when the price aligns with the CAPM return."},
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Shaun
9 months ago
"Candidate 1: Under CAPM, price should reflect systematic risk; the price will adjust so expected return equals CAPM—though I’m not sure how the 'above information' shifts it."},
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Wava
9 months ago
[
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Adela
10 months ago
{
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Shaunna
10 months ago
Hmm, I'm a bit unsure about this one. The options seem to be related to cloud services, but I'm not entirely familiar with the specific Huawei offerings. I'll have to think this through carefully.
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Kara
10 months ago
Okay, I've got this. The three container registries are Google Container Registry, Amazon Container Image Service, and Docker Hub. I'm feeling good about those choices.
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Shaunna
10 months ago
This looks like a tricky question about disaster recovery and database clustering. I'll need to carefully read through the details to make sure I understand the requirements.
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Blossom
10 months ago
Hmm, I'm a bit confused about the different data subject rights mentioned here. I'll need to re-read the scenario carefully to make sure I understand which ones apply.
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Jarod
10 months ago
I remember a practice question that asked something similar, and I think we discussed how observations lead to conclusions.
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