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

question 59

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The beta for Taggart Transcontinental is closest to:

• A)0.75.
• B)0.80.
• C)1.00.
• D)1.10.

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Definitions:

Relevant Constraints

Factors or limitations that affect the choices available to a business or individual when making decisions.

Investment Guidelines

Rules or criteria laid out by an investor or fund manager to guide the selection and management of investments.

Money Market Accounts

Financial accounts that typically offer higher interest rates compared to savings accounts, often used for short-term financial needs.

Concentrated Investments

Concentrated investments involve a portfolio that is heavily invested in a small number of assets, increasing risk due to lack of diversification.