Use the Table for the Question(s) Below

question 89

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%

---

Definitions:

Cash

A form of liquid asset that represents immediate purchasing power and can be used for transactions or as a reserve for future payments.

Receivables

Balances owed by customers for the consumption or acquisition of goods and services provided by a company, pending payment.

Accrued Salaries

Salaries that have been earned but not yet paid out to employees.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.