The Risk-Free Rate, Average Returns, Standard Deviations and Betas for Three

question 41

Multiple Choice

The risk-free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below. What is the M² measure for Portfolio B?

• A)0.43%
• B)1.25%
• C)1.77%
• D)1.43%

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Definitions:

Order Fulfillment Department

refers to the division within a company responsible for processing customer orders, from receipt to delivery.

Variable Costs

Expenditures that change in direct response to production volumes, such as direct labor and raw materials.

Variable Food Costs

Variable food costs change with the level of production or sales, such as the cost of ingredients for a restaurant.

Performance Evaluation

The process of assessing the efficiency and effectiveness of employees, departments, or organizations, often for the purpose of making decisions related to promotions, compensations, and training.