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

---

Definitions:

Social Media

Platforms and websites where users can create, share, or exchange information, ideas, pictures/videos in virtual communities and networks.

Horseback Riding

The skill or activity of riding a horse, used for sport, leisure, or transportation.

Robotic Process Automation

The technology that allows organizations to automate mundane, repetitive tasks with the help of software robots or 'bots'.

Internet of Things

A network of physical objects—devices, vehicles, appliances—embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.