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:

World Bank

An international monetary organization granting loans and finances to governments of less affluent countries for capital project undertakings.

Developing Nations

Countries with lower levels of industrialization, lower standards of living, and lower Human Development Index (HDI) scores compared to more developed countries.

Labor Productivity

The output of goods and services produced per unit of labor input, often used as an indicator of economic efficiency.

Labor Force

The total number of people employed and unemployed, who are actively looking for work in an economy.