Use the Information for the Question(s)below

question 121

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 beta of the precious metals fund with the Luther Fund
Is closest to:

• A)-0.3
• B)-0.6
• C)0.3
• D)0.6

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Definitions:

Abject Poverty

A condition characterized by extreme poverty where individuals lack the basic necessities of life, such as food, clothing, and shelter.

Public Services

Services provided by the government to its citizens, such as education, healthcare, and transportation.

Clothed

The state of being dressed or wearing garments.

Fed

A term colloquially used to refer to the Federal Reserve System, the central banking system of the United States.