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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
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:
10.8%
30.0%
18.0%
35.0%
how to compute that, please show the detail thanks
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