Use the Information for the Question(s)below

question 102

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 required return for Sisyphean's new project is closest to:

• A)24%.
• B)14%.
• C)18%.
• D)10%.

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Definitions:

Legitimate Power

A form of power derived from a position of authority in an organizational structure, which entitles someone to make demands and expect compliance.

Legitimate Power

The authority derived from a position or role within an organization, typically associated with recognized and formal authority.

Coercive Power

The ability to compel or force someone to perform a certain action through threats or punishment.

Reward Power

The ability of an individual to influence others' behavior by controlling the distribution of rewards.