UPS, a Delivery Services Company, Has a Beta of 1

question 46

Multiple Choice

UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart?

• A) 9.74%
• B) 10.23%
• C) 9.25%
• D) 9.55%

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Definitions:

Channel And Medium

The means or method through which communication is conveyed from sender to receiver, such as digital, print, or verbal.

Complex Ideas

Concepts or thoughts that involve multiple interconnected elements, often requiring deeper understanding and analysis to grasp fully.

Visual, Printed

Refers to materials or information presented in a form that can be seen, often on paper or a digital screen.

Oral Media

Communication methods that involve spoken language to convey messages, such as radio, storytelling, or oral traditions.