Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A mutual fund earned an average annual return of 7.6% over a 5-year period. During that time, the average risk-free rate was 1.5% and the
A mutual fund earned an average annual return of 7.6% over a 5-year period. During that time, the average risk-free rate was 1.5% and the average market return was 10.6% per year. If the fund had a portfolio beta of 0.7, what was its CAPM alpha? Answer in percent, rounded to one decimal place.
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