You Hold the Positions in the Following Table A) 1421 Percent
B) 16

question 16

Multiple Choice

You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio?
$$\begin{array} { l r r r r } & \text { Price } & \text { Shares } & \text { Beta } \\\text { Advarsed Micro Devices } & \$ 40 & 100 & 3.8 \\\text { FedEx Corp. } & \$ 30 & 100 & 1.2 \\\text { Microsoft } & \$ 50 & 100 & 0.4 \\\text { Sara Lee Corp. } & \$ 20 & 100 & 0.5\end{array}$$

• A) 14.21 percent
• B) 16.76 percent
• C) 13.97 percent
• D) 15.38 percent

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Definitions:

Premarital Cohabitation

The practice of living together in a romantic relationship without being married.

Institution of Marriage

A socially and legally recognized and regulated union between individuals that establishes rights and obligations between them.

Cooperativeness

Cooperativeness is the willingness of an individual or group to work together with others for a common goal, emphasizing teamwork and collaboration.

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing individuals to express their thoughts and feelings in a respectful manner.