You Hold the Positions in the Following Table A) 1237 Percent
B) 9

question 91

Multiple Choice

You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 10 percent and the risk-free rate is 4 percent, what is the required return of the portfolio?
$$\begin{array} { l r r r r } & \text { Price } & \text { Shares } & \text { Beta } \\\text { Advarsed Micro Devices } & \$ 10 & 200 & 4.2 \\\text { FedEx Corp. } & \$ 100 & 50 & 1.1 \\\text { Microsoft } & \$ 30 & 150 & 0.7 \\\text { Sara Lee Corp. } & \$ 15 & 200 & 0.5\end{array}$$

• A) 12.37 percent
• B) 9.73 percent
• C) 10.17 percent
• D) 11.68 percent

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Definitions:

Deposit

The act of placing money into a financial institution for safekeeping or as a way to earn interest.

Rate Of Return

The appreciation or depreciation of an investment's value within a selected period, stated as a percentage of the investment's outset value.

Lottery Winnings

Money or prizes won through a system of random drawing or chance.

Annual Payments

The amounts that need to be paid once every year as part of a financial obligation.