You Hold the Positions in the Following Table A) 1483 Percent
B) 15

question 85

Multiple Choice

You hold the positions in the following table. If you expect the market to earn 10 percent and the risk-free rate is 3 percent, what is the required return of the portfolio?
$$\begin{array} { l c r r } & \text { Price } & \text { Shares } & \text { Beta } \\\text { Websitecom } & \$ 25.00 & 100 & 2.72 \\\text { Budget Stores } & \$ 38.50 & 200 & 1.65 \\\text { Marnufacturing Corp } & \$ 52.00 & 50 & 2.30 \\\text { Pharnacy Corp. } & \$ 18.50 & 200 & 0.65\end{array}$$

• A) 14.83 percent
• B) 15.81 percent
• C) 28.67 percent
• D) 32.83 percent

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Definitions:

Population Parameter

A numerical value that represents a characteristic or feature of an entire population.

Confidence Coefficient

The probability that a confidence interval contains the true population parameter, typically expressed as a percentage.

Margin Of Error

An estimate of the amount of random sampling error in a survey's results, expressing the range within which the true value is expected to lie with a certain level of confidence.

Sample Size

The number of observations or units included in a sample from a population, critical for the reliability of statistical analyses.