Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
Sisyphean industries is seeking to raise capital from a large group of investors to fund a new project.Suppose that the efficient portfolio has an expected return of 14% and a volatility of 20%.Sisyphean's new project is expected to have a volatility of 40% and a 70% correlation with the efficient portfolio.The risk-free rate is 4%.
-The beta for Sisyphean's new project is closest to:

• A)1.25.
• B)1.40.
• C)0.70.
• D)1.75.

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Definitions:

Matrix Organizational Structure

An organizational structure that combines two or more types of organizational structures, typically functional and product-based divisions.

Hi-Tech

Referring to the latest technology and equipment that are both advanced and sophisticated.

Top Managers

Senior executives responsible for making strategic decisions and overseeing a company's operations.

Long-Range Plans

Strategic initiatives and objectives set by an organization to be achieved over an extended period, typically over several years.