The volatility of the alternative investment that has the


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 10% and a volatility of 18%. Assume that the CAPM assumptions hold.

The volatility of the alternative investment that has the lowest possible volatility while having the same expected return as Google is closest to:

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Financial Management: The volatility of the alternative investment that has the
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