Use the Information for the Question(s)below

question 116

Essay

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.
-You currently own $100,000 worth of Wal-Mart stock.Suppose that Wal-Mart has an expected return of 14% and a volatility of 23%.The market portfolio has an expected return of 12% and a volatility of 16%.The risk-free rate is 5%.Assuming the CAPM assumptions hold,what alternative investment has the lowest possible volatility while having the same expected return as Wal-Mart? What is the volatility of this portfolio?

Comprehend the motivational aspects behind gossip and the grapevine within organizations.

Recognize the importance of trust in effective communication and how it can be built or eroded in organizational contexts.

Understand the concept and applications of operant conditioning.

Differentiate between operant and respondent behaviors.

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Definitions:

Modern Society

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Lawton IADL Instrument

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Self-Report

A method for gathering data where individuals provide information about themselves, often used in surveys and questionnaires.

Environmental Hazards

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