CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return
Question:
CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return of 12 percent this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 5 percent and you expect the rate of return on the market portfolio to be 15 percent, should you invest in this mutual fund?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Study Guide To Accompany Fundamentals Of Corporate Finance
ISBN: 9780073012421
5th Edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Question Posted: