Question
For the following period, the return of 2 funds and a market as well as treasury bills rate were projected as bellow Fund A% Fund
For the following period, the return of 2 funds and a market as well as treasury bills rate were projected as bellow Fund A% Fund B% Kongoni stock Treasury Bills Market 2010 15 10 11 6 2011 -6 -2 -5 5 2012 17 13 12 7 2013 18 9 11 6 2014 22 11 13 7 Comment on the performance and valuation of each fund using CAPM. Discus your result to guide the management on each fund. What would be the implication in a portfolio with equal distribution of the funds? To analyze the performance and valuation of each fund using the CAPM (Capital Asset Pricing Model), we need to calculate the expected return of each fund based on the risk-free rate, market return, and the fund's beta.
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