Use the Information for the Question(s)below

question 107

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.
-California Gold Mining's beta with the market is closest to:

• A)0.9.
• B)1.25.
• C)-0.9.
• D)-1.24.

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Definitions:

Posterior Side

The back or rear part of the body or a structure, opposite to the anterior or front.

Adductor Magnus

A large muscle in the thigh that functions to adduct and medially rotate the thigh, playing a key role in stabilizing walking and standing.

Biceps Femoris

A muscle in the thigh part of the hamstring group, involved in knee flexion and hip extension.

Rectus Femoris

A muscle in the quadriceps group that extends the leg at the knee and assists in hip flexion.