a mutual fund manager expects her portfolio to earn a rate of return of 11 percent this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 49% and you expect the rate of retum on the market portfolio to be 14%, should you invest in this mutual fund?
a mutual fund manager expects her portfolio to earn a rate of return of 11 percent this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 49% and you expect the rate of retum on the market portfolio to be 14%, should you invest in this mutual fund?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 4P
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