Exhibit 18-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $R_{CI} 0.17$

question 72

Multiple Choice

Exhibit 18-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Given the following information evaluate the performance of Cloud Incorporated (CI) . $R_{CI} 0.17$ $\quad$ $\quad$ $B_{CI}=1.05$ $\quad$ $\quad$ $\mathrm{R}_{\mathrm{f}}=0.07$ $\quad$ $\quad$ $\mathrm{R}_{\mathrm{m}}=0.12$
-Refer to Exhibit 18-6. Calculate CI's overall performance.

• A) 0.1225
• B) 0.1000
• C) 0.0525
• D) 0.0475
• E) 0.0325

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Definitions:

Partnership Interest

An ownership share in a partnership that represents a partner's stake in the profits, losses, and assets of the partnership.

Like-kind Exchange

A tax deferment strategy allowing for the exchange of similar types of properties without the immediate tax implications of selling the property.

IRC Section 121

A provision in the Internal Revenue Code that allows for the exclusion of up to $250,000 ($500,000 for married couples filing jointly) of capital gains from the sale of a primary residence.

Principal Residence

The primary location that a person inhabits. It often qualifies for specific tax benefits, such as the exclusion of gain from its sale.