Use the Information for the Question(s)below

question 4

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.
-Monsters' beta with the market is closest to:

• A)1.3.
• B)1.0.
• C)0.6.
• D)0.8.

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Definitions:

Ibuprofen Tid

The prescription of ibuprofen to be taken three times a day; "tid" is derived from "ter in die," which is Latin for three times a day.

Chronic Low

Persistently low levels of a health-related factor over an extended period, which could refer to things like blood pressure, energy, or other measurable aspects.

Lab Result

The outcome or findings of a clinical laboratory test, providing critical data for diagnosis and treatment decisions.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.