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Explosive BetaSML is a fund management company that has created a family of exchange traded (mutual) funds that are designed to put investors at various

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Explosive BetaSML is a fund management company that has created a family of exchange traded (mutual) funds that are designed to put investors at various points along the Security Market Line. One of Explosive's products, called the Market Bull Plus fund, is designed to provide a return that is twice the market portfolio's expected return. The Bull Plus fund is constructed by borrowing money at the risk-free rate and then buying the market portfolio. If the risk-free rate is 4% and the expected return on the market is 12%, then what is the portfolio weight of the market index for the Market Bull Plus fund? 2.5 3.5 3.0 2.3

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