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

question 80

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.
-What alternative investment has the highest possible expected return while having the same volatility as Google?

• A)-25% in the risk-free asset and +125% in the market portfolio
• B)-20% in the risk-free asset and +120% in the market portfolio
• C)-94% in the risk-free asset and +194% in the market portfolio
• D)6% in the risk-free asset and +94% in the market portfolio

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Definitions:

Educational Achievement

Educational achievement refers to the accomplishments or success of an individual in academic and learning environments, often measured through grades, diplomas, degrees, and other formal credentials.

Credential Inflation

The phenomenon where the educational qualifications required for a particular job become increasingly higher, often exceeding the skills actually necessary for the job.

Benefit Employers

Advantages or favorable conditions created for businesses or organizations that employ individuals.

Head Start Program

A program in the United States aimed at early childhood education, health, and parent involvement services to low-income children and their families.