Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. A certain mutual fund earned an average annual return of 6.5% over the last 5 years. During that time, the average risk-free rate was
1. A certain mutual fund earned an average annual return of 6.5% over the last 5 years. During that time, the average risk-free rate was 0.8% and the average market return was 11.1%. If the fund has beta of 0.75, what was its annual alpha? Answer in percent, round 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started