Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A mutual fund earned an average annual return of 6.0% over the last 5 years. During that time, the average risk-free rate was 1.1% and

A mutual fund earned an average annual return of 6.0% over the last 5 years. During that time, the average risk-free rate was 1.1% and the average market return was 5.4%. If the fund has beta of 1.21, what was its annual alpha? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Family Matters Making The Right Financial Decision For Your Filipino Family

Authors: Belen Loreto Grand

1st Edition

1683509544, 978-1683509547

More Books

Students also viewed these Finance questions