Use the Information for the Question(s)below

question 113

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 expected return on the precious metals fund is closest to:

• A)-3%
• B)4%
• C)1%
• D)10%

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Definitions:

Golgi Complex

A cell organelle responsible for modifying, sorting, and packaging proteins and lipids for export or delivery to other organelles.

Asexually

Reproduction without the fusion of gametes, resulting in offspring that are genetically identical to the parent organism.

Brown Algae

Photosynthetic aquatic organisms with a brown coloration, mainly found in marine environments.

Stramenopiles

A diverse group of eukaryotic organisms that includes diatoms, brown algae, and water molds, characterized by the presence of straw-like hairs on their flagella at some stage in their life cycle.