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:

Product Decision

The process of selecting, designing, and developing products to meet consumer demand and achieve competitive advantage.

House of Quality

A fundamental part of the Quality Function Deployment process that translates customer requirements, based on marketing research and benchmarking data, into an appropriate number of engineering targets to be met by a new product design.

Service Provider

A company or individual that offers services to others in exchange for payment.

Customer Expectations

The beliefs or standards that customers have regarding the quality, delivery, and benefits of products or services.