21. What is the risk free rate?

A. 3.4%

B. 3.7%

C. 5.5%

D. 5.9%

E. 6.2%

USE INFO IN SCREENSHOT TO ANSWER

As an intern at Hadlock & Fee Investment, you have been assigned to manage a $10 million portfolio that is invested in five stocks: Stock TJX GM RTC MAB INX Amount Invested $4 million $2 million $2 million $1 million $1 million Beta 1.2 1.1 1.0 0.7 0.5 You have learned the overall portfolio return is 11 percent and the market risk premium is 5 percent