What Is the Portfolio Expected Return with 125% Invested in a and the Remainder

question 373

Multiple Choice

What is the portfolio expected return with 125% invested in A and the remainder in the risk-free asset via borrowing at the risk-free rate?

• A) 9.8%
• B) 11.3%
• C) 16.8%
• D) 17.5%
• E) 20.1%

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock.

Days' Sales In Inventory

A measure of how efficiently a company turns its inventory into sales, calculated as inventory divided by daily sales.

Quick Ratio

An assessment of a firm's capacity to fulfill its immediate liabilities using its most convertible assets, excluding stock.

Source Of Cash

Various origins from which a company or individual can acquire cash, including operations, financing, and investing activities.