Use the Information for the Question(s)below

question 119

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 California Gold Mining's expected return is 2%.Then California Gold Mining's alpha is closest to:

• A)-3%.
• B)-13%.
• C)7%.
• D)-11%.

Understand Kurt Lewin's three-step process for facilitating change.

Comprehend the role of employee empowerment in successful organizational change.

Identify the relation between physical and mental arousal levels and performance.

Recognize the impact of cultural variations on stress and its manifestations.

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Definitions:

Safety Deposit Box

A secure container, typically held within a bank vault, used to store valuable possessions or documents.

Codicil

A supplemental document that modifies, explains, or revokes a will or part of a will.

Bequest

Personal property left in a will. Also called legacy.

Durable Power of Attorney

A legal document that grants a person the authority to make decisions on behalf of another person in financial or health matters, continuing in effect even if the grantor becomes incapacitated.