Use the Information for the Question(s)below

question 122

Multiple Choice

Use the information for the question(s) below.
You are presently invested in the Luther Fund, a broad based mutual fund that invest 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

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Definitions:

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.

Display

The visual presentation of information, data, or images, usually on a screen or through a physical setup, intended to convey messages or facilitate interaction.

Specific Tone

A particular sound or quality of voice that conveys a distinct emotion, attitude, or intention.

Active System

A system that engages in actions or activities that produce changes or results, typically referring to mechanisms or processes that require energy input to operate.