TABLE 3-7
Given Below Is the Frequency Distribution of the 12-Month

question 62

Short Answer

TABLE 3-7
Given below is the frequency distribution of the 12-month rate of return achieved by 30 stocks.
$\begin{array}{ll}\hline\text { 12- month Rate of Return } & \text { Number of Funds } \\\hline-0.10 \text { but less than } 0.0 & 3 \\0.0 \text { but less th an } 0.1 & 5 \\0.1 \text { but less than } 0.2 & 6 \\0.2 \text { but less than } 0.3 & 10 \\0.3 \text { but less than } 0.4 & 6 \\\hline\end{array}$

-Referring to Table 3-7, what is the approximate mean rate of return?

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Definitions:

Pre-Tax Cost

The cost of an investment or expense before the deduction of taxation.

Unlevered Cost

The cost of capital for a company that operates without any debt, reflecting the risk of the company's equity alone.

Unlevered Cost

The cost of capital for a project or investment without taking into account the effects of debt financing.