Solution-Highest possible expected return

Highest possible expected return

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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?

Reference no: EM132999410

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Highest possible expected return

Reference no: EM132999410

Reference no: EM132999410

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