Use the Table for the Question(s)below

question 126

Multiple Choice

Use the table for the question(s) below.
Consider the following three individuals portfolios consisting of investments in four stocks:
-Assuming that the risk-free rate is 4% and the expected return on the market is 12%,then required return on Peter's Portfolio is closest to:

• A)10%
• B)12%
• C)9%
• D)8%

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Definitions:

Competition

The economic rivalry among businesses to attract customers, increase sales, and achieve a higher market share.

Natural Monopoly

A type of monopoly that occurs when a single firm can supply the entire market at a lower cost than any potential competitors, often due to high fixed costs.

Fair Return

A reasonable profit that companies aim for, which covers costs and provides a sustainable margin without being excessive.

Operating Efficiency

The capability of an organization to deliver products or services to its customers in the most cost-effective manner without sacrificing quality.