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%.

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A Chemical Brain Disorder is a condition affecting brain function that involves chemical imbalances or disruptions in the brain.

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The act of intentionally causing one's own death.

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The primary factor or condition that is most frequently associated with a specified outcome, like a disease or death.

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The unconscious mind refers to the part of the mind that is not within one's conscious awareness, influencing thoughts, feelings, and behaviors without conscious realization.