Use the Information for the Question(s)below

question 4

Multiple Choice

Use the information for the question(s) below.
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:

• A)1.3.
• B)1.0.
• C)0.6.
• D)0.8.

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Definitions:

Igf2r

A gene that encodes the insulin-like growth factor 2 receptor, involved in various cellular processes including growth, development, and apoptosis.

Parental Fitness

The genetic contribution of parents to the next generation's gene pool, usually measured by the number of offspring that survive to reproductive age.

Extrinsic Mortality

The death rate from external factors, outside the organism's control, such as predation or accidents, as opposed to intrinsic factors like aging.

Mutations

Permanent alterations in the DNA sequence of an organism's genome, which can lead to diversity within species and potentially new species over time.