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:

Improper Fractions

Improper fractions are fractions where the numerator (the top number) is greater than or equal to the denominator (the bottom number), representing a value equal to or greater than one.

Mixed Numbers

A number consisting of an integer and a proper fraction.

Improper Fractions

Fractions where the numerator is greater than or equal to the denominator, resulting in a value greater or equal to one.

Mixed Numbers

Numbers consisting of an integer and a proper fraction.