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

question 66

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-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%.

---

Definitions:

Outsource

The practice of hiring third-party service providers to perform tasks, handle operations, or provide services that are either difficult to manage or are outside the company's expertise.

Customized Items

Products or services tailored to meet the specific needs or preferences of an individual customer or market segment.

Mitigate Risks

The process of taking action to minimize the likelihood and impact of undesired events or risks.

Supply Managers

Professionals responsible for overseeing supply chain operations, including procurement, inventory management, and supplier relationships.