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1. Assume that the risk-free rate is 5% and the market portfolio has an expected return of 13% with volatility of 18%.Monsters Inc. has a

1. Assume that the risk-free rate is 5% and the market portfolio has an expected return of 13% with volatility of 18%. Monsters Inc. has a volatility of 24% and a market correlation of .60, while California Gold Mining has a volatility of 32% and a market correlation of -.7. Assume that the CAPM assumptions hold.

calculate California Gold Mining's required return .

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