You Hold the Positions in the Following Table A)2021 Percent
B)22

question 4

Multiple Choice

You hold the positions in the following table. What is the beta of your portfolio? 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? $$\begin{array} { | l | c | r | c | } \hline & \text { Price } & \text { Shares } & \text { Beta } \\\hline \text { Website.com } & \$ 20.50 & 100 & 3.2 \\\hline \text { Budget Stores } & \$ 36.20 & 150 & 1.5 \\\hline \text { Manufacturing Corp } & \$ 60.70 & 75 & 2.4 \\\hline \text { Pharmacy Corp } & \$ 28.40 & 200 & 0.75 \\\hline\end{array}$$

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

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The characteristic of a contract or agreement that allows it to be upheld or compelled by law.

Perfection

The state of being free from all flaws or defects, or achieving the highest degree of excellence.

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A mortgage that has relatively low fixed payments during the life of the mortgage followed by one large final (balloon) payment.

Equity

Fairness or justice as applied in the correction of law or the ownership interest in a company or property.