-Which of These Four Funds Had the Largest Market Risk

question 45

Multiple Choice

$\begin{array}{llcl}\underline{\text { SD }} &\underline{ \text { Beta} }&\underline{\text { alpha }} &\underline{\mathrm{R}^{2}}\\\text { Fund 1 1.97 } & 1.0 & 1.3 & 0.95 \\\text { Fund 22.94 } & 0.8 & 0.6^{*} & 0.80 \\\text { Fund 33.82 } & 1.2 & -3.5 & 0.90 \\\text { Fund 44.70 } & 1.4 & 4.2 & 0.65\end{array}$

-Which of these four funds had the largest market risk?

• A)Fund 1
• B)Fund 2
• C)Fund 3
• D)Fund 4

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale.

Willing Supplier

An entity or individual that is ready and able to provide goods or services at a certain price.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive in the market.

Market Price

The ongoing value at which a commodity or service is offered for buy or sell in a trading environment.