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

question 81

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.
-The expected return on the alternative investment having the highest possible expected return while having the same volatility as Google is closest to?

• A)21.6%
• B)19.6%
• C)23.4%
• D)35.0%

---

Definitions:

Compulsive Behaviors

Actions repeatedly performed by an individual, driven by an uncontrollable urge, often as a response to obsessive thoughts, leading to distress or impairment in functioning.

Cognitive-behavioral Theorists

Specialists in a psychological approach that focuses on changing maladaptive thoughts and behaviors to improve emotional regulation and develop personal coping strategies.

Negatively Reinforced

A process in behavior modification where the removal of an unfavorable stimulus strengthens a particular behavior.

Id Impulses

Id impulses refer to the innate and primitive desires and urges, often sexual or aggressive in nature, that stem from the id part of the personality in Freudian psychology.