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

---

Definitions:

Symptoms

Signs or manifestations of a condition or disease observed by a patient, often indicating the presence of an underlying health issue.

Specific Criteria

A defined set of guidelines or characteristics used to classify or diagnose conditions and disorders accurately.

Psychodynamic Model

A psychological perspective that emphasizes unconscious psychological processes (e.g., wishes and fears of which we're not fully aware), and contends that childhood experiences are crucial in shaping adult personality.

Abnormal Behavior

Patterns of emotion, thought, or action deemed pathological (outside cultural norms), often resulting in cognitive distress or impairment in functioning.