Consider the Following Information,and Then Calculate the Required Rate of Return

question 17

Multiple Choice

Consider the following information,and then calculate the required rate of return for the Scientific Investment Fund.The total investment in the fund is $2 million.The market required rate of return is 15 percent,and the risk-free rate is 7 percent.

• A) 14.3%
• B) 15.0%
• C) 13.1%
• D) 12.7%
• E) 10.3%

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, diligence, and a strong sense of duty.

Commitments

Obligations or pledges to do something, often implying a promise made to others or oneself.

Impression Management

The process by which individuals attempt to control the perceptions others have of them.

Phony

Not genuine; fake or deceitful in character or behavior.