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Use the information for the question(s) below.
Tom's portfolio consists solely of an investment in Merck stock.Merck has an expected return of 13% and a volatility of 25%.The market portfolio has an expected return of 12% and a volatility of 18%.The risk-free rate is 4%.Assume that the CAPM assumptions hold in the market.
-Assuming that Tom wants to maintain the current expected return on his portfolio,then the amount that Tom should invest in the market portfolio to minimize his volatility is closest to:
Base Peak
In mass spectrometry, this is the highest peak in a mass spectrum, representing the most abundant ion.
3,3-dimethyl-2-butanone
A ketone with a branched chain structure used in organic synthesis and various industrial applications.
Off Resonance Decoupled
A technique in NMR spectroscopy used to simplify spectral interpretation by selectively decoupling the spins of specific nuclei from their scalar coupling with others.
Triplet
An atomic or molecular state characterized by three possible values of its magnetic quantum number, indicating a level of spin degeneracy.
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