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%.

Understand the role of trust and mutual respect in developing long-term business relationships.

Recognize the importance of integrating social media and CRM systems in addressing post-sale service needs.

Comprehend the strategies for enhancing customer satisfaction through services such as warranties and speedy delivery.

Acknowledge the effect of service quality on customer expectation and salesperson success.

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Definitions:

Pupils

The round, black openings in the center of the irises of the eyes that regulate the amount of light that enters.

Dilates

Refers to the widening or expanding of something, often used in the context of blood vessels or pupils adjusting to light or stress.

Lowers

Decreases in amount, intensity, or magnitude, often used in the context of reducing something to a lesser state or level.

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary body functions such as heart rate and digestion.