You Hold the Positions in the Following Table

question 76

Multiple Choice

You hold the positions in the following table.If you expect the market to earn 14 percent and the risk-free rate is 5 percent,what is the required return of the portfolio?

• A) 20.21 percent
• B) 22.66 percent
• C) 28.66 percent
• D) 32.48 percent

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Definitions:

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups in a society.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and social scientist whose work in economics laid the foundation for much of the current understanding of labor and its relation to capital.

Social Contract

The social contract is a theory in political philosophy suggesting that people live together in society in accordance with an agreement that establishes moral and political rules of behavior.

Rousseau

Jean-Jacques Rousseau, an influential 18th-century philosopher known for his contributions to political philosophy, education, and literature.