* Use the Following Information to Answer the Next Three

question 63

Multiple Choice

* Use the following information to answer the next three questions *
$$\begin{array} { | l | c | c | c | } \hline \text { Asset } & \begin{array} { c } \text { Mean Annual } \\\text { Return }\end{array} & \text { Beta } & \begin{array} { c } \text { Standard } \\\text { Devintinn }\end{array} \\\hline \text { Fund A } & 16 \% & 1.20 & 24 \% \\\hline \text { Benchrnark } & 14 \% & 1.10 & 19 \% \\\hline \text { Fund A minus Benchrnark } & 2 \% & \text { NA } & 4 \% \\\hline \text { Treasury Security } & 3 \% & \text { NA } & \text { NA } \\\hline\end{array}$$
-What is Fund A's tracking risk?

• A) 2%
• B) 4%
• C) 5%
• D) 24%

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Definitions:

Inventory

The complete list of items such as property, goods in stock, or the contents of a building.

Irregulars

Products that have minor faults or variations from standard specifications, often sold at reduced prices due to these imperfections.

Production Overruns

Occurrences when more units of a product are produced than were originally ordered or forecasted, often leading to excess inventory.

Service Retailer

A business that sells services rather than physical goods, providing intangible products to customers.