The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below. Fund A B C S&P 500 "f Std Dev Avg 11.00% 28.00% 13.00% 24.50% 16.50% 31.50% 10.00% 18.00% 3.00% Beta 1.20 1.25 1.45 1.00 What is the M² measure for portfolio B? 1.02% .35% .65% 1.90%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are
given below.
Fund
A
B
C
S&P 500
rf
Avg Std Dev
Beta
1.20
11.00%
28.00%
13.00% 24.50%
1.25
16.50% 31.50% 1.45
10.00% 18.00% 1.00
3.00%
What is the M² measure for portfolio B?
O 1.02%
35%
65%
O 1.90%
Transcribed Image Text:The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below. Fund A B C S&P 500 rf Avg Std Dev Beta 1.20 11.00% 28.00% 13.00% 24.50% 1.25 16.50% 31.50% 1.45 10.00% 18.00% 1.00 3.00% What is the M² measure for portfolio B? O 1.02% 35% 65% O 1.90%
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