Use the Information for the Question(s)below

question 82

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.
-Suppose that Monsters' expected return is 12%.Then Monsters' alpha is closest to:

• A)-2.0%.
• B)-1.0%.
• C)1.0%.
• D)0.5%.

---

Definitions:

Radiation Exposure

The state of being exposed to ionizing radiation or radioactive substances, which can have health impacts.

Medical Staff

Group of healthcare professionals, including doctors, nurses, and other healthcare workers, who provide medical services in hospitals or other healthcare settings.

SPECT

Single photon emission computed tomography; a radiologic procedure in which a gamma camera detects signals induced by gamma radiation and a computer converts these signals into two- or three-dimensional images that are displayed on a screen.

Gamma Radiation

High-energy electromagnetic radiation emitted from radioactive atoms and used in medical treatments and imaging, as well as industrial applications.