Use the Following Information to Answer the Question(s)below

question 81

Multiple Choice

Use the following information to answer the question(s) below.
Your investment portfolio consists of $10,000 worth of Google stock.Suppose that the risk-free rate is 4%,Google stock has an expected return of 14% and a volatility of 35%,and the market portfolio has an expected return of 12% and a volatility of 18%.Assume that the CAPM assumptions hold.
-The expected return on the alternative investment having the highest possible expected return while having the same volatility as Google is closest to?

• A)21.6%
• B)19.6%
• C)23.4%
• D)35.0%

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Definitions:

Somatic Symptom Disorder

A mental disorder in which a person has physical symptoms that involve more than one body part, but no physical cause can be found.

Postoperative Scar

The fibrous tissue that forms on the skin's surface as part of the natural healing process following surgery.

Leg Cramps

Involuntary and often painful contractions of the muscles in the leg, commonly affecting the calf muscles.

Somatic Symptom Disorder

A psychological disorder involving persistent and significant focus on physical symptoms, such as pain, that cause major distress or problems in functioning.