Question
Data: R Z =14.5% ; r f =2% ; and Z =4% 1. Compute the expected rates of return and levels of risk for the
Data: RZ=14.5%; rf=2%; and Z=4%
1. Compute the expected rates of return and levels of risk for the Capital Allocation Line (CAL)
using values of (y=2)
2. in y=2 is leverage being used? What are the two outcomes of leverage? Answer in terms of risk and return
3. where y=2, what is the initial margin value if margin trading is used?
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Mutual Fund Industry Handbook
Authors: Gremillion
1st Edition
0471736244, 978-0471736240
