Use the Following Information to Answer the Question(s)below

question 26

Multiple Choice

Use the following information to answer the question(s) below.
Your investment portfolio consists of $10,000 worth of Google stock.Suppose that the risk-free rate is 4%,Google stock has an expected return of 14% and a volatility of 35%,and the market portfolio has an expected return of 12% and a volatility of 18%.Assume that the CAPM assumptions hold.
-The volatility of the alternative investment that has the lowest possible volatility while having the same expected return as Google is closest to:

• A)18.0%.
• B)22.5%.
• C)23.4%.
• D)35.0%.

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Definitions:

Kin Selection

A biological approach that prioritizes the propagation of an organism's kin over its own survival and reproductive achievements, even if it means personal sacrifice.

Norm of Reciprocity

A social standard that expects an individual to respond to others with the same behavior they have received, such as kindness for kindness.

Prosocial Behavior

Actions intended to benefit others, including helping, sharing, donating, co-operating, and volunteering.

Altruism

The selfless concern for the well-being of others without expecting any reward.