Author Question: Social Security benefits contain cost of living adjustments. Indicate whether the statement is ... (Read 38 times)

biggirl4568

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Social Security benefits contain cost of living adjustments.
 
  Indicate whether the statement is true or false

Question 2

You have just read the annual report of a mutual fund. It boasted of a 26 return and advertised that it had beat the market return last year by three percentage points.
 
  In doing some research you discover the fund had a beta of +1.5 and the return on risk-free Treasury securities was 15.0. Assuming a market risk premium of 8.0 should be used to evaluate performance means that
  A)
 
  the fund's performance was impressive; three percentage points is significant, given the above data.
  B)
 
  the fund's performance was good, but not impressive; it beat the market, but only by one percentage point not three.
  C)
 
  the fund's performance was no better than what you would have expected.
  D)
 
  the fund's performance was actually a percentage point less than what you would have expected.



nhea

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Answer to Question 1

TRUE

Answer to Question 2

D



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