Multiple Choice Question $4$: Consider the following market data:

$$

$($

$$

$$

$)$

$=$

$15$

$\%$

E$($R

M

$$

$)=15\%$;

$$

$($

$$

$$

$)$

$=$

$18$

$\%$

$\backslash$sigma $($R

M

$$

$)=18\%.$

Also consider the individual security

$$

i$,$ where $81\%$ of the risk is systematic, and the volatility of returns is $20\%.$

What can you conclude? a$)$ That in equilibrium, the expected return of this security

$$

i is $15\%?$ b$)$ That it is not possible to calculate the return of this security because there is likely missing data? c$)$ That investing in this security would be considered an efficient investment? d$)$ That the return of this security is equivalent to the return of the risk$-$free asset? e$)$ That the return of this security is not influenced by market return fluctuations?