Use the Table for the Question(s) Below

question 8

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 Paul's portfolio is closest to:

• A) 20%
• B) 22%
• C) 18%
• D) 16%

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Definitions:

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Cash Provided

Funds that have been generated or received by a company, often referring to cash flow from operating activities.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Payments

Transactions that involve the transfer of cash from one entity to another.