CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return

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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?

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Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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