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:

Nationalist Movement

A political, social, and economic ideology and movement characterized by the promotion of the interests of a particular nation, especially with the aim of gaining and maintaining the nation's sovereignty over its homeland.

Lakshmi Bai

A prominent figure in Indian history, the Queen of Maratha-ruled Jhansi State, known for her role in the Indian Rebellion of 1857.

Rebell Forces

Armed groups that oppose or resist the authority, control, or convention, typically in a context of political conflict. Note: The correct spelling is "Rebel Forces."

Jhansi

A historic city in northern India, known for its significant role in the Indian Rebellion of 1857, particularly through its association with Rani Lakshmibai.