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You Hold the Positions in the Following Table A) 1237 Percent
B) 9

Question 91

Multiple Choice

You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 10 percent and the risk-free rate is 4 percent, what is the required return of the portfolio?
 Price  Shares  Beta  Advarsed Micro Devices $102004.2 FedEx Corp. $100501.1 Microsoft $301500.7 Sara Lee Corp. $152000.5\begin{array} { l r r r r } & \text { Price } & \text { Shares } & \text { Beta } \\\text { Advarsed Micro Devices } & \$ 10 & 200 & 4.2 \\\text { FedEx Corp. } & \$ 100 & 50 & 1.1 \\\text { Microsoft } & \$ 30 & 150 & 0.7 \\\text { Sara Lee Corp. } & \$ 15 & 200 & 0.5\end{array}


A) 12.37 percent
B) 9.73 percent
C) 10.17 percent
D) 11.68 percent

Correct Answer:

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