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You are presently invested in the Luther Fund,a broad-based mutual fund that invests in stocks and other securities.The Luther Fund has an expected return of 14% and a volatility of 20%.Risk-free Treasury bills are currently offering returns of 4%.You are considering adding a precious metals fund to your current portfolio.The metals fund has an expected return of 10%,a volatility of 30%,and a correlation of -.20 with the Luther Fund.
-Will adding the precious metals fund improve your portfolio?
Pre-tax Interim Net Income
The net income earned before taxes are deducted during an interim period, such as a quarter or half-year.
Income Tax Loss
A situation where tax-deductible expenses exceed taxable revenues, potentially reducing taxable income in future periods through loss carryforwards.
Tax Loss Carryforward
A tax provision that allows a company to use its current loss towards future profits to reduce taxable income.
Taxable Income
The amount of income subject to taxation, after all deductions and allowances have been considered, according to the tax laws.
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