Consider the Following Information and Then Calculate the Required Rate

question 107

Multiple Choice

Consider the following information and then calculate the required rate of return for the Universal Investment Fund, which holds 4 stocks.The market's required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund's assets are as follows: $\begin{array}{crr}\text { Stock } & \text { Investment } & \text { B eta } \\\text { A } & \$ 200,000 & 1.50 \\\text { B } & \$ 300,000 & -0.50 \\\text { C } & \$ 500,000 & 1.25 \\\text { D } & \$ 1,000,000 & 0.75\end{array}$

• A) 9.58%
• B) 10.09%
• C) 10.62%
• D) 11.18%
• E) 11.77%

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Definitions:

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to classify underweight, normal weight, overweight, and obesity.

Metabolic Rate

Metabolic Rate is the rate at which an organism's body consumes energy, crucial for determining the amount of food energy it needs to maintain its body functions.

Metabolic Rate

The rate at which an organism uses energy to support its basic functions and activities.