Use the Information for the Question(s)below

question 15

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.
-California Gold Mining's required return is closest to:

• A)-5%.
• B)13%.
• C)15%.
• D)5%.

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Definitions:

Response Rates

The percentage of people who respond to a specific call-to-action out of the total number targeted, often used in marketing and research.

Direct Mail

A marketing strategy that involves sending physical promotional materials directly to potential customers at their homes or offices.

Marketing

The activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Direct

Straightforward or without intermediary; often used in marketing to describe sales tactics that appeal directly to the consumer.