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

question 81

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 expected return on the alternative investment having the highest possible expected return while having the same volatility as Google is closest to?

• A)21.6%
• B)19.6%
• C)23.4%
• D)35.0%

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Definitions:

Measurable

Capable of being precisely quantified or assessed, often used in the context of goals or performance indicators.

Concrete

a construction material composed of cement, aggregate (like sand and gravel), water, and often admixtures, used for building structures due to its strength.

Decision-making Process

The cognitive process resulting in the selection of a belief or a course of action among several possible alternatives.

Alternative Courses

Options or paths available for action or decision-making in various contexts, such as education, career, or planning strategies.