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Business, 04.08.2021 03:50 hdhdhd49jdhd

Suppose the expected market return is 14%, the volatility of the market return is 0.25, the risk-free rate is 4%, and the beta of Yahoo is 1.3. Which of the following is true? A. The CAPM predicted expected return for Yahoo is 17% B. According to CAPM, portfolios that combine the market portfolio and Yahoo stock can reach a Sharpe Ratio of 0.56 due to diversification. C. The optimal risky portfolio according to CAPM has a Sharpe Ratio of 0.4 D. The volatility of Yahoo stock’s return is 0.325 E. The Sharpe Ratio for investing 100% of the portfolio in Yahoo stock is 0.52

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