Use the Table for the Question(s)below

question 48

Multiple Choice

Use the table for the question(s) below.
Consider the following three individuals' portfolios consisting of investments in four stocks:
-Assuming that the risk-free rate is 4% and the expected return on the market is 12%,then the required return on Peter's portfolio is closest to:

• A)10%.
• B)12%.
• C)9%.
• D)8%.

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Definitions:

Capital Expenditures Budget

A plan for a company’s expenditures on large physical assets like property, plant, and equipment that are expected to last more than one year.

Budgeted Balance Sheet

A projection of a company's financial position at a specific future date, showing expected assets, liabilities, and equity.

Operating Budgets

Detailed projections that outline expected income and expenses related to the day-to-day operations of an organization over a specific period.

Budgeted Income Statement

A financial statement that projects income and expenses for a future period, typically used for planning and budgeting purposes.