Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A mutual fund earned an average annual return of 6.5% over the last 5 years. During that time, the average risk-free rate was 1.0% and
A mutual fund earned an average annual return of 6.5% over the last 5 years. During that time, the average risk-free rate was 1.0% and the average market return was 7.4%. If the fund has beta of 0.83, 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
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