Consider the Following Information and Then Calculate the Required Rate

question 58

Multiple Choice

Consider the following information and then calculate the required rate of return for the Global Investment Fund,which holds 4 stocks.The market's required rate of return is 17.50%,the risk-free rate is 3.00%,and the Fund's assets are as follows (Do not round your intermediate calculations. ) : $\begin{array}{rrr}\text { Stock }&\text { Investment }&\text { Beta }\\A & \$ 200,000 & 1.50 \\\mathrm{~B} & 300,000 & -0.50 \\\mathrm{C} & 500,000 & 1.25 \\\mathrm{D} & \$ 1,000,000 & 0.75\end{array}$
?

• A) 14.06%
• B) 15.46%
• C) 14.76%
• D) 15.18%
• E) 13.35%

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Definitions:

Debit Sheet

A record listing all debit transactions, often used in accounting to monitor expenditures.

Double-Entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records, less complex than double-entry accounting.

Useful Reports

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