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Use the Information for the Question(s)below

question 82

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 Monsters' expected return is 12%.Then Monsters' alpha is closest to:

Understand the implications of maladaptive coping strategies on mental and physical health.

Understand the motivations and feelings of scientists involved in the Manhattan Project.

Analyze the American public's perception of Harry S. Truman upon his ascension to the presidency.

Identify key figures who influenced Truman's foreign policy and the dynamics of US-Soviet relations post-World War II.

Definitions:

Response Value

The observed variable in an experiment or study, often considered as the output or result that is measured.

Observed Response

The actual outcome that is measured or observed in an experiment or study.

Regression Line

A line through a scatter plot of data points that best expresses the relationship between those points, often used in predictive analysis.

Test Statistic

A value calculated from sample data during a hypothesis test that is used to decide whether to reject the null hypothesis.