Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 115

Multiple Choice

Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array} { c c c c } \text { Period } & \begin{array} { c } \text { Return } \\\text { of Radtran } \\\text { (Percent) }\end{array} & \begin{array} { c } \text { Ppecific Index } \\\text { (Percent) }\end{array} & \begin{array} { c } \text { True } \\\text { General Index } \\\text { (Percent) }\end{array} \\\hline 1 & 10 & 12 & 15 \\2 & 12 & 10 & 13 \\3 & - 10 & - 8 & - 8 \\4 & - 4 & - 10 & 0\end{array}$$
-Refer to Exhibit 7-3. What is the average true return?

• A) 1%
• B) 2%
• C) 3%
• D) 4%
• E) 5%

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Definitions:

Appropriate Code

A set of rules or guidelines that are used to govern behavior or actions, often in a professional or technical context.

Internal Controls

Procedures and policies implemented within an organization to safeguard its assets, enhance the reliability of accounting records, and increase efficiency.

Effectiveness

A measure of the degree to which objectives are achieved and the extent to which targeted problems are solved, without necessarily considering the resources used.

Accounting Records

Documents and books that keep track of all financial transactions of a business or individual.