Consider the Following Information and Then Calculate the Required Rate

question 90

Multiple Choice

Consider the following information and then calculate the required rate of return for the Universal Investment Fund,which holds 4 stocks.The market's required rate of return is 13.25%,the risk-free rate is 7.00%,and the Fund's assets are as follows:
Stock
Investment
Beta
A
$ 200,000
1) 50
B
$ 300,000
−0) 50
C
$ 500,000
1) 25
D
$1,000,000
0) 75

• A) 9.58%
• B) 10.09%
• C) 10.62%
• D) 11.18%
• E) 11.77%

---

Definitions:

Lifetime

The duration of existence of an individual or the period during which something is functional or valid.

Long-term Memory

A type of memory that can store an unlimited amount of information for a potentially indefinite length of time.

Sensory Memory

The shortest-term element of memory, it allows the ability to retain impressions of sensory information after the original stimuli have ended.

Chunking

Chunking is a cognitive strategy for organizing information into manageable units or chunks, making it easier to process and remember.