Use the Following Information to Answer the Question(s)below

question 6

Multiple Choice

Use the following information to answer the question(s) below.
The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-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:

Net Operating Income

A company's total pre-tax profit, derived from its normal business operations, excluding non-operating income and expenses.

Special Order

Special Order refers to a one-time or unique request by a customer for a product or service that may differ from the standard offerings of a company.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding expenses and revenues from investments and financing.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.