Suppose That Google Stock Has a Beta of 1

question 10

Multiple Choice

Suppose that Google Stock has a beta of 1.06 and Boeing stock has a beta of 1.31.If the risk-free interest rate is 4% and the expected return from the market portfolio is 12%,then the expected return on a portfolio that consists of 30% Google stock and 70% Boeing stock is closest to:

• A) 12.5%
• B) 13.1%
• C) 13.5%
• D) 13.9%

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Definitions:

Alpha Waves

Brainwave patterns associated with a relaxed yet alert state, typically found in the frequency range of 8-12 Hz.

Night Terrors

Intense episodes of fear that occur during sleep, often resulting in screaming, sweating, and confusion upon awakening.

N3 Sleep

The deepest stage of non-REM (rapid eye movement) sleep, characterized by delta brain waves and associated with the body's repair processes and memory consolidation.

REM Sleep

REM Sleep is a stage of sleep characterized by rapid eye movements, increased brain activity, vivid dreams, and temporary muscle paralysis, playing a critical role in emotional regulation and memory.