The Following Information Is to Be Used to Answer Questions

question 8

Multiple Choice

The following information is to be used to answer questions 13-17.
$\begin{array}{llcc}\underline{ \text { SD }} &\underline{ \text {Beta }}&\underline{ \text {alpha }}&\underline{ \text { \(\mathrm{R}^{2}\) }} \\ \text { Fund 11.97 } &1.0&1.3&0.95\\ \text { Fund 22.94 } &0.8&0.6^*&0.80\\ \text { Fund 33.82} &1.2&-3.5&0.90\\ \text { Fund 44.70 } &1.4&4.2&065\\ &\\\end{array}$
$\text { *Significant at the } 5 \text { percent level }$
-Which of these four funds had the largest market risk?

• A) Fund 1 Solution: Fund 4 has the highest beta.
• B) Fund 2
• C) Fund 3
• D) Fund 4

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Definitions:

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception, mood, and a variety of cognitive processes.

Dreamlike Scenes

Imagery or scenarios that are surreal and reminiscent of sequences experienced during dreams.

Depressant

A substance that slows down the central nervous system, reducing arousal and stimulation in the body.

Alcohol

A psychoactive substance commonly found in beverages like beer, wine, and spirits, known for its effects on the nervous system.