For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a unit selling price of $380. Compute the anticipated break-even sales (units).

Explanation:

Breakeven=fixed cost/selling price - variable cost

so 14,300000/380-250

14,300000/130 = 110,000 units to be able to make break even

The required rate of return for the Global Investment Fund is 14.06%

Explanation:

Stock    Investment      Beta

A          $200,000        1.50

B          $300,000        -0.50

C          $500,000         1.25

D         $1,000,000        0.75

Total   2,000,000

First Calculate the portfolio Beta

Portfolio bet is the average beta calculated on the basis of weightage of each investment. The beta of every investment is multiplied with the weightage of each investment in a portfolio. The all the value is added to get the portfolio beta

Portfolio Beta = ( 1.5 x 200,000 / 2,000,000 ) + ( -0.50 x 300,000 / 2,000,000) + ( 1.25 x 500,000 / 2,000,000 ) + ( 0.75 x 1,000,000 / 2,000,000 )

Portfolio Beta = 0.15 - 0.075 + 0.3125 + 0.375

Portfolio beta = 0.7625

Required rate of return

Capital asset pricing model measure the expected return on an asset or investment. it is used to make decision for addition of specific investment in a well diversified portfolio.

Formula for rate of return

Expected return = Risk free rate + beta ( market risk premium )

Expected return = Risk free rate + beta ( Market return - Risk free rate )

Use portfolio beta here

Expected return = 3% + 0.7625 ( 17.50% - 3% )

Expected return = 14.06%