A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is 0.9. The
A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is 0.9. The rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%.
What expected rate of return would you demand before you would be willing to invest in this mutual fund?
Expected Rate of Return: %
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Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
