Consider the Following Information and Then Calculate the Required Rate

question 135

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 13.25%, the risk-free rate is 7.00%, and the Fund's assets are as follows: $$\begin{array} { l r r } \text { Stock } & \underline { \text { Investment } } & \underline { \text { Beta } } \\\text { A } & \$ 200,000 & 1.50 \\\text { B } & 300,000 & - 0.50 \\\text { C } & 500,000 & 1.25 \\\text { D } & \$ 1,000,000 & 0.75\end{array}$$

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

---

Definitions:

Confidentiality Breach

An incident where information that was meant to be kept secret is disclosed without authorization.

Ethical Duty

An obligation to adhere to moral principles and conduct, typically within a professional context, ensuring fairness, honesty, and integrity.

Model Rules

Standardized rules or guidelines developed to serve as a template or benchmark for legal or professional conduct.

Greenhouse Gases

Gaseous compounds in the Earth's atmosphere that trap heat, contributing to the greenhouse effect and global climate change.