26. CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of...
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26. CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%, should you invest in this mutual fund? (LO2)
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Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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