Use the Information for the Question(s)below

question 116

Essay

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.
-Will adding the precious metals fund improve your portfolio?

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Definitions:

Stator Core

The stationary part of an electric generator or motor, especially the magnetic core, around which the winding is arranged.

Small Wire

A conductor of electricity characterized by a relatively small cross-sectional area, affecting its resistance and current-carrying capacity.

Single-phase Synchronous Motor

A type of AC motor that operates at a constant speed, synchronized with the frequency of the supply current.

Hysteresis Motor

A type of synchronous motor that operates using the hysteresis loss principle in the rotor to achieve torque, known for quiet operation and precise speed control.