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

question 66

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-Suppose that Google stock has a beta of 1.06 and Boeing stock has a beta of 1.31.If the risk-free interest rate is 4% and the expected return from the market portfolio is 12%,then the expected return on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A)12.5%.
• B)13.1%.
• C)13.5%.
• D)13.9%.

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Definitions:

Neon

Neon is a chemical element with symbol Ne and atomic number 10, known as a noble gas that exhibits a distinct reddish-orange glow when used in lamps and advertising signs.

Synthetic Element

An element that is not found naturally on Earth and can only be created artificially in a laboratory or nuclear reactor.

Technetium

A radioactive chemical element with symbol Tc and atomic number 43, noteworthy for being the first element to be artificially produced.

Continuous Spectrum

A type of emission spectrum showing an uninterrupted band of colors from red to violet, typically emitted by an incandescent solid, liquid, or gas under pressure.