Use the Information for the Question(s)below

question 65

Multiple Choice

Use the information for the question(s) below.
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.
-The required return on the precious metals fund is closest to:

• A)-3%.
• B)4%.
• C)1%.
• D)10%.

---

Definitions:

Dred Scott Case

A landmark Supreme Court case in 1857 which ruled that African Americans, whether enslaved or free, could not be American citizens and had no standing to sue in federal court.

Roger Taney

Chief Justice of the U.S. Supreme Court best known for delivering the majority opinion in the Dred Scott case, which declared African Americans could not be American citizens.

Sectional Debates

Disagreements and discussions that occur between different regions or sections of a country, often related to political, social, or economic issues.

Liberties and Freedoms

Fundamental rights and protections guaranteed by law or constitution, including speech, religion, and the right to privacy, that cannot be infringed upon by governments.