You Hold the Positions in the Following Table

question 49

Multiple Choice

You hold the positions in the following table. If you expect the market to earn 14 percent and the risk-free rate is 5 percent, what is the required return of the portfolio?

• A)20.21 percent
• B)22.66 percent
• C)28.66 percent
• D)32.48 percent

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Definitions:

Asset Turnover

A ratio that determines the competence of an organization in using its assets to generate income from sales.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.

Intangible Asset

An asset that is not physical in nature, such as patents, copyrights, trademarks, and goodwill.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life to represent how much of the asset's value has been used.