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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.
-Suppose that California Gold Mining's expected return is 2%.Then California Gold Mining's alpha is closest to:
Negligence Per Se
A doctrine that allows a judge or jury to infer duty and breach of duty from the fact that a defendant violated a statute that was designed to prevent the type of harm that the plaintiff incurred.
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A comprehensive set of regulations for building construction aimed at ensuring safety and structural integrity, often adopted by municipalities and states.
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The transfer of rights, property, or obligations from one party to another, typically seen in contracts and agreements.
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