Exhibit 14 -Refer to Exhibit 14

question 14

Multiple Choice

Exhibit 14.11
Use the Information Below for the Following Problem(S)
$\begin{array}{lcc}\text { Investment } & \text { Beta } & \text { Analyst's Estimated Return } \\\hline \text { Stock } \mathrm{X} & 2.3 & 15.5 \% \\\text { Stock } \mathrm{Y} & 1.2 & 13.6 \% \\\text { Market Portfolio } & 1.0 & 11.5 \%\end{array}$

-Refer to Exhibit 14.11.What is the required rate of return for Stock X based on the capital asset pricing model (CAPM) ?

• A) 15.5%
• B) 17.3%
• C) 21.3%
• D) 26.5%
• E) 30.5%

---

Definitions:

Burrito

A type of Mexican street food consisting of a wheat flour tortilla wrapped or folded into a cylindrical shape to enclose fillings.

Production Possibilities Frontier

A schematic that illustrates all top production scenarios for two separate commodities, considering a range of inputs that covers resources and other contributing factors.

Taco

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling such as beef, pork, chicken, seafood, vegetables, and cheese.

Production

The process of creating goods and services by combining various inputs like labor, materials, and technology.