Use the Information for the Question(s)below

question 34

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 expected return on his portfolio,then the amount that Tom should invest in the market portfolio to minimize his volatility is closest to:

• A)100%
• B)90%
• C)125%
• D)110%

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Definitions:

Shoulder Rotation Test

A physical examination to assess the range of motion and functionality of the shoulder joint.

Flexibility

The ability of joints to move through their full range of motion without pain or stiffness.

Body Mechanics

The study and application of proper body movement techniques to prevent injury, especially during physical activities or lifting.

Body Composition

The proportion of fat compared to the weight of muscles, bones, and internal organs.