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Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%.Monsters Inc.has a 24% volatility and a correlation with the market of .60,while California Gold Mining has a 32% volatility and a correlation with the market of -.7.Assume the CAPM assumptions hold.
-Monsters' beta with the market is closest to:
Depth Perception
The ability to perceive the world in three dimensions and judge the distance of an object.
Convergence
The process or state of converging, in various contexts such as the meeting of two or more lines or paths at a point, or the evolution of similar features in independent species.
Parallel Processing
The ability of the brain to simultaneously process incoming stimuli of differing quality, a key feature of neural network functioning.
Continuity
Refers to the unbroken and consistent existence or operation of something over a period of time.
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