Use the Following Information to Answer the Question(s)below

question 26

Multiple Choice

Use the following information to answer the question(s) below.
Your investment portfolio consists of $10,000 worth of Google stock.Suppose that the risk-free rate is 4%,Google stock has an expected return of 14% and a volatility of 35%,and the market portfolio has an expected return of 12% and a volatility of 18%.Assume that the CAPM assumptions hold.
-The volatility of the alternative investment that has the lowest possible volatility while having the same expected return as Google is closest to:

• A)18.0%.
• B)22.5%.
• C)23.4%.
• D)35.0%.

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Definitions:

Simon LeVay

A neuroscientist known for his research on brain structure differences between homosexual and heterosexual individuals.

Challenging Goal

A target or objective that is ambitious and requires effort and perseverance to achieve.

Firm Deadlines

Strict or unchangeable due dates by which tasks or objectives must be completed.

Own Deadlines

Self-imposed timelines or due dates set by individuals to complete tasks or projects.