The Mark IV Fund Had a Rate of Return of 21

question 5

Multiple Choice

The Mark IV Fund had a rate of return of 21% last year.If its beta weight was +1.5 and if the return on the overall market was 12%,its risk adjusted rate of return,RAROR,is

• A)+19.5%.
• B)- 3.0%.
• C)+23.0%.
• D)+ 2.0%.

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Definitions:

Zone of Tolerance

The range within which consumers are willing to accept variations in a product or service’s level of quality.

Reservation Policy

A set of rules and guidelines established by a service provider regarding the booking of its services or facilities, often including deposit requirements, cancellation policies, and booking deadlines.

Empowerment

The process of giving individuals or groups the power and resources to make decisions, take actions, and be responsible for their outcomes.

Standardization

The process of implementing and developing technical standards to ensure products and services meet certain quality and safety criteria consistently.