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Answer the following problems and show your calculations in the space allowed. 1) You have saved 100.000TL for retirement. The money is invested in a
Answer the following problems and show your calculations in the space allowed. 1) You have saved 100.000TL for retirement. The money is invested in a diversified portfolio of Turkish stocks, but your financial advisor is trying to convince you to move some money into one of the following mutual funds. The table shows the funds' performance from 2000 2020. Over the same period, the BIST 100 returned 23,7% annually, had a standard deviation of 25,9%, and the T-bill rate averaged 14.5%. Fund Average return Std deviation Beta Mild Fund 21,3% 31.8% 0.7 Fast Fund 23.9 37.2 1.1 High Five Growth 26.3 39.1 1.3 a) Which mutual fund invests in the riskiest stocks? Why? (16 pts) b) Would you want to invest in any of the funds? Why or why not? (16 pts)
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