USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 143

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
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-Refer to Exhibit 7.5. Calculate the risk premium per unit of risk for the three portfolios above assuming the risk-free rate is 4.0%. A B C

• A) 0.068 0.027 0.072
• B) 0.414 0.276 0.389
• C) 0.700 0.680 0.605
• D) 0.300 0.280 0.205
• E) 0.650 0.580 0.480

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Definitions:

Percentage-Of-Completion

An accounting method that recognizes revenues and expenses in proportion to the completion of a contracted work or project.

Economic Substance

The underlying economic reality of a transaction which determines its legal and tax implications, regardless of its form.

Inventory Value

The total cost assigned to goods and materials held in stock by a business at a specific point in time.

Percentage-Of-Completion

An accounting method used to recognize revenue and expenses of long-term projects proportionally with the degree of completion.