This has been bugging me since I first took this exam. Now doing some review and got stuck again.
The answer was 15.5% and it was the only right answer that was logical. what I don’t get is in exhibit 3 they tell you the return for EF was 12%. That was my first choice and I only picked 15.5 after 12% was not there because I had calculated it using APT in another question. So, had both 12 and 15.5 been there how would we have known which one to choose?