You have two mutual funds in your portfolio with different risk levels. Douceurs generates a return of 20% and Cimes generates a return of 30%. The associate risk for Douceurs is 5 and 40 for Cimes. The risk-free rate is 10%, which would be your choice and why?
You have two mutual funds in your portfolio with different risk levels. Douceurs generates a return of 20% and Cimes generates a return of 30%. The associate risk for Douceurs is 5 and 40 for Cimes. The risk-free rate is 10%, which would be your choice and why?
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
Section: Chapter Questions
Problem 1PS
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You have two mutual funds in your portfolio with different risk levels. Douceurs generates a return of 20% and Cimes generates a return of 30%. The associate risk for Douceurs is 5 and 40 for Cimes. The risk-free rate is 10%, which would be your choice and why?
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