Use the Following Information to Answer the Question(s)below

question 17

Multiple Choice

Use the following information to answer the question(s) below.
Your investment portfolio consists of $10,000 worth of Google stock.Suppose that the risk-free rate is 4%,Google stock has an expected return of 14% and a volatility of 35%,and the market portfolio has an expected return of 12% and a volatility of 18%.Assume that the CAPM assumptions hold.
-What alternative investment has the lowest possible volatility while having the same expected return as Google?

• A)-25% in the risk-free asset and +125% in the market portfolio
• B)-20% in the risk-free asset and +120% in the market portfolio
• C)0% in the risk-free asset and +100% in the market portfolio
• D)20% in the risk-free asset and +80% in the market portfolio

---

Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by feelings of disdain for other groups.

Impression Management

The systematic attempt to influence how others perceive us.

Culture Shock

The confusion and discomfort a person experiences when in an unfamiliar culture.

Physical Distractions

are environmental factors or stimuli that can disrupt the focus or attention of individuals, leading to decreased productivity or performance.