Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
Sisyphean industries is seeking to raise capital from a large group of investors to fund a new project.Suppose that the efficient portfolio has an expected return of 14% and a volatility of 20%.Sisyphean's new project is expected to have a volatility of 40% and a 70% correlation with the efficient portfolio.The risk-free rate is 4%.
-The beta for Sisyphean's new project is closest to:

• A)1.25.
• B)1.40.
• C)0.70.
• D)1.75.

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Definitions:

Down Syndrome

A genetic disorder caused by the presence of all or part of an extra 21st chromosome, characterized by distinct physical features and varying degrees of cognitive impairment.

Chromosomes

Filamentous entities found within the nucleus of both animal and plant cells, composed of protein and a single DNA molecule, responsible for transferring genetic data.

Turner Syndrome

A genetic disorder affecting females, characterized by the partial or complete absence of one of the X chromosomes.

XY Sex Chromosomes

A combination of two sex chromosomes, X and Y, that typically determines male gender in humans and most other mammals; the presence of a Y chromosome usually leads to the development of male physical characteristics.