Use the Information for the Question(s)below

question 119

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.
-California Gold Mining's beta with the market is closest to:

• A)0.9
• B)1.25
• C)-0.9
• D)-1.25

Identify the differences and the comparison between American and European options.

Understand the financial strategies involving options and bonds, including employee stock options (ESO), warrants, and callable bonds.

Analyze the strategic investment decisions involving convertible bonds and their impact on control of the firm.

Understand the ethical considerations and implications of convertible bonds in international investments.

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