Use the Information for the Question(s)below

question 4

Multiple Choice

Use the information for the question(s) below.
Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%.Monsters Inc.has a 24% volatility and a correlation with the market of .60,while California Gold Mining has a 32% volatility and a correlation with the market of -.7.Assume the CAPM assumptions hold.
-Monsters' beta with the market is closest to:

• A)1.3.
• B)1.0.
• C)0.6.
• D)0.8.

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Definitions:

Vocabulary Size

The total number of distinct words a person knows and can use.

Cognitive Explanations

encompass the reasoning or theories that explain how mental processes such as perception, memory, and problem-solving work.

Chomsky

A linguist and cognitive scientist who revolutionized the field of linguistics with his theory of generative grammar, emphasizing the innate structure of human language.

Piaget, Vygotsky

Refer to Jean Piaget and Lev Vygotsky, two influential theorists in developmental psychology, known for their work on cognitive development and socio-cultural theory respectively.