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

---

Definitions:

Self-Disclosure

The act of revealing personal information about oneself to others, which can strengthen relationships and foster intimacy.

Nonverbally

Communicating without the use of spoken language, often through gestures, facial expressions, and body language.

Open Communication

A form of exchanging information where parties involve share thoughts, ideas, and feelings freely and honestly.

Dialogue

A conversation between two or more people, used as a means of communication and understanding differing viewpoints.