Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
Sisyphean industries is seeking to raise capital from a large group of investors to fund a new project.Suppose that the efficient portfolio has an expected return of 14% and a volatility of 20%.Sisyphean's new project is expected to have a volatility of 40% and a 70% correlation with the efficient portfolio.The risk-free rate is 4%.
-The beta for Sisyphean's new project is closest to:

• A)1.25.
• B)1.40.
• C)0.70.
• D)1.75.

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Definitions:

Clairvoyance

The claimed ability to gain information about an object, person, location, or physical event through extrasensory perception, beyond the five senses.

Psychokinesis

The purported ability to move or manipulate objects with the mind, without physical interaction, a phenomenon not supported by scientific evidence.

Telepathy

The purported transmission of information from one person to another without using any of our known sensory channels or physical interaction.

Precognition

The alleged ability to see or know about events before they happen.