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(Problems 3, 4) Use the information for the question(s) below. Add to watchlist Ferrari N.V. (RACE) NYSE - NYSE Delayed Price Currency in USD 137.70 ( PM EDT ) 137.70 Buy Sell At close After hours PM EDT Summary Chart Conversations Statistics Historical Data Profile Financial Analysis Options Holders Sustainability Previous Close 132.33 25.826B 105D 1M 6M YTD 1Y 5 Max Full screen 140.00 Open 138.31 1.39 Market Cap Beta (3Y Monthly) PE Ratio (TTM) EPS (TTM) 137.65 Bid 136.60 x 800 30.70 Ask 138.00 x 900 4.49 134.00 136.75 - 139.07 Jan 31, 2018 Feb 5, 2018 0.85 (0.64%) 132 33 131.00 93.85 - 149.85 Day's Range 52 Week Range Volume Avg. Volume Earnings Date Forward Dividend & Yield Ex-Dividend Date 1y Target Est 859,083 2018-04-23 10 AM 12 PM 2 PM 4 PM 342,245 141.56 Trade prices are not sourced from all markets 3. Suppose you bought one Ferrari stock at the end of yesterday at the closing price$132.33. Assuming there was no dividend today, what is Ferrari's rate of stock return at the end of today? (4 points) 4. The "beta" highlighted by the black box (4 points) A) means Ferrari's rate of return increases by 1% for each 1.39% increase of the market. B) measures an unsystematic and independent risk. C) measures a firm-specific and idiosyncratic risk. D) is the risk that cannot be washed away through diversification

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