ESS. OF INVESTMENTS - ETEXT ACCESS CARD
11th Edition
ISBN: 9781265909055
Author: Bodie
Publisher: MCG
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Chapter 5, Problem 15PS
For Problems 12-16, assume that you manage a risky portfolio with an expected
15. You estimate that a passive portfolio invested to mimic the S&P 500 stock index provides an expected rate of return of 13% with a standard deviation 25%. Draw the CML and your fund’s CAL on an expected return/standard deviation diagram. (LO 5-4)
a. What the sloped the CML?
b. Characterize in one short paragraph the advantage of your fund over the index fund.
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Chapter 5 Solutions
ESS. OF INVESTMENTS - ETEXT ACCESS CARD
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