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2. Consider the table below showing return & risk for two funds. Mutual Funds Returns Standard Deviation Fund A : Well diversified value fund 10%
2. Consider the table below showing return & risk for two funds.
Mutual Funds | Returns | Standard Deviation |
Fund A : Well diversified value fund | 10% | 16% |
Fund B: A risk less Fund | 3.5% | 0% |
2.A Show risk & return for a security consisting of 60 % in risky fund & 40 % risk less fund. Show calculations.
2.B Show return & Risk for a portfolio consisting of 130 % in risky fund in the context of CAPM. Show calculations.
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