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

question 94

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The expected return for Rearden Metal is closest to:

• A)10.0%.
• B)11.4%.
• C)11.8%.
• D)12.0%.

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Definitions:

Federal Government

The national government of a federal country, which holds the authority of governing the whole country, distinguishing it from the governments of the individual states or provinces.

19th Century

Refers to the period from January 1, 1801, to December 31, 1900, marking the nineteenth century in the Gregorian calendar.

American West

The American West refers to the region of the United States located west of the Mississippi River, characterized by its unique historical development, culture, and landscape.

Labor

The utilization of human physical and mental efforts towards the creation of services and products.