The Following Information Is to Be Used to Answer Questions

question 37

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 total risk?

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

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Definitions:

Trustors

Individuals or entities that place trust in another, often in contexts involving the transfer of information, responsibilities, or assets.

Being Built

The process of constructing or developing something over time.

Adversarial Relationship

A relationship characterized by conflict, opposition, or incompatibility between parties.

Identification-Based Trust

Trust that arises when individuals identify with each other’s desires and intentions, thereby understanding and predicting each other’s behavior.