Use the Table for the Question(s)below

question 46

Multiple Choice

Use the table for the question(s) below.
-If the risk-free rate of interest is 7.5%,then the value of security "B" is closest to:

• A)$91.00.
• B)$92.50.
• C)$93.00.
• D)$100.00.

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Definitions:

Standard Deviation

A statistical measurement that depicts the variability or volatility of an investment's returns.

EAFE Index

The Europe, Australasia, Far East index is a widely used index of non-U.S. stocks.

Weighting

The process of assigning different levels of importance or emphasis to various elements in a calculation or analysis.

Total Return

The overall return on an investment over a certain period, accounting for both capital gains and dividends or interest.