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:

Merchandise

Goods that are purchased for resale at a profit.

Asset Account

An account that records all financial transactions related to a company's assets, including current and fixed assets.

Credit Customer

A customer who purchases goods or services on credit, paying for them at a later date.

Asset Account

An account that records tangible or intangible items owned by a business which have value.