Use the Following Information to Answer the Question(s)below

question 94

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The expected return for Rearden Metal is closest to:

• A)10.0%.
• B)11.4%.
• C)11.8%.
• D)12.0%.

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Definitions:

Predictable Demand

A situation where future customer demand for a product or service can be forecasted with a relatively high degree of accuracy based on historical data and trends.

Unpredictable Demand

Demand characterized by high variability and challenging to forecast accurately, often influenced by external factors and trends.

Low Cost Countries

Countries with lower labor and production costs, making them attractive locations for manufacturing and sourcing components.

Safety Inventory

Extra stock kept on hand to guard against uncertainty in demand or supply and prevent stockouts.