Solved

Use the Information for the Question(s)below

question 2

Multiple Choice

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 minimum volatility that Tom could achieve by investing in the market portfolio and risk-free investment is closest to:

Definitions:

Artificial Insemination

Injection of sperm into the uterus to fertilize an ovum.

Ovulation

The release of an ovum from an ovary.

Ovum

A female gamete or egg cell involved in reproduction, which when fertilized by a sperm, can develop into an embryo.

Chemical

A substance produced by or used in a chemical process, described by a specific composition of atoms or molecules.