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

question 80

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.
-What alternative investment has the highest possible expected return while having the same volatility as Google?

• A)-25% in the risk-free asset and +125% in the market portfolio
• B)-20% in the risk-free asset and +120% in the market portfolio
• C)-94% in the risk-free asset and +194% in the market portfolio
• D)6% in the risk-free asset and +94% in the market portfolio

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Definitions:

Career Plans

Individual strategies for professional development and progression.

Global Leadership

The ability to influence individuals, groups, and organizations from different countries or cultures towards achieving organizational or societal goals.

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High-level managers within a company who are responsible for making strategic decisions and ensuring the organization's long-term success.

Global Leadership Ability

The skill or capacity to guide, influence, or direct groups or organizations within an international context towards achieving set goals.