Use the Information for the Question(s)below

question 12

Multiple Choice

Use the information for the question(s) below.
Tom's portfolio consists solely of an investment in Merck stock.Merck has an expected return of 13% and a volatility of 25%.The market portfolio has an expected return of 12% and a volatility of 18%.The risk-free rate is 4%.Assume that the CAPM assumptions hold in the market.
-Assuming that Tom wants to maintain the current volatility of his portfolio,then the maximum expected return that Tom could achieve by investing in the market portfolio and risk-free investment is closest to:

• A)13%.
• B)15%.
• C)16%.
• D)12%.

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Definitions:

Feminine Roles

Socially expected behaviors, tasks, and responsibilities that are typically associated with women or considered appropriate for women within a given society.

Mixed Gender Interaction

Social or professional engagement between individuals of different genders.

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Places that are open to all individuals, usually owned or maintained by the government, where various social interactions and activities occur.

Barrie Thorne

An American sociologist known for her contributions to the sociology of gender, childhood, and family life.