Use the Information for the Question(s)below

question 15

Multiple Choice

Use the information for the question(s) below.
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.
-California Gold Mining's required return is closest to:

• A)-5%.
• B)13%.
• C)15%.
• D)5%.

---

Definitions:

White-Collar Crimes

Non-violent, financially motivated crimes typically committed by business and government professionals.

Speedy Trial

The constitutional right to a prompt and efficient trial process to avoid undue delays in legal proceedings.

Sixth Amendment

A provision of the U.S. Constitution guaranteeing rights to a fair trial, including the right to a speedy trial, an impartial jury, and counsel for the defense.

Jury

A group of people selected to decide a verdict in a legal case based on evidence presented to them in court.