Suppose That Google Stock Has a Beta of 1

question 10

Multiple Choice

Suppose that Google Stock has a beta of 1.06 and Boeing stock has a beta of 1.31.If the risk-free interest rate is 4% and the expected return from the market portfolio is 12%,then the expected return on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A) 12.5%
• B) 13.1%
• C) 13.5%
• D) 13.9%

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Definitions:

Ecstasy

A psychoactive drug known chemically as MDMA, often used recreationally for its effects like increased energy, emotional warmth, and distorted time and sensory perceptions.

Mary Jane

A slang term commonly used to refer to marijuana, a psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Cannabis

Substance that causes feelings of well-being, perceptual distortions, and paranoid thinking.

Opioid Use

The use or abuse of substances derived from opium, including prescription pain relievers and illicit drugs, which can lead to addiction and other health issues.