The beta for the risk-free investment is closest to:
A)1.
B)0.
C)Unable to answer this question without knowing the risk-free rate.
D)Unable to answer this question without knowing the market's volatility.

Multiple Choice

Related questions

Q 117

The beta for the market portfolio is closest to:
A)1.
B)0.
C)Unable to answer this question without knowing the market's expected return.
D)Unable to answer this question without knowing the market's volatility.

Q 119

Use the information for the question(s)below.
Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%.Monsters Inc.has a 24% volatility and a correlation with the market of .60,while California Gold Mining has a 32% volatility and a correlation with the market of -.7.Assume the CAPM assumptions hold.
-Monsters' beta with the market is closest to:
A)1.3.
B)1.0.
C)0.6.
D)0.8.

Q 120

Use the information for the question(s)below.
Suppose that the risk-free rate is 5% and the market portfolio has an expected return of 13% with a volatility of 18%.Monsters Inc.has a 24% volatility and a correlation with the market of .60,while California Gold Mining has a 32% volatility and a correlation with the market of -.7.Assume the CAPM assumptions hold.
-Monsters' required return is closest to:
A)10.0%.
B)13.0%.
C)11.5%.
D)15.5%.