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.

---

Definitions:

One-Way ANOVA

A statistical test that compares the means of three or more independent groups to determine if there are any statistically significant differences among the groups.

Rejection Region

The range of values for which the null hypothesis is not considered plausible and is rejected in hypothesis testing.

Single-Factor ANOVA

A statistical technique used to compare the means of three or more samples using variance analysis on a single independent variable.

Test Statistic

A calculated value used in statistical hypothesis testing to determine whether to reject the null hypothesis.