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Fund A had yearly returns (in excess of the risk-free rate) of 5.00%, 6.32%, -5.20%. Fund B had yearly returns (in excess of the risk-free
Fund A had yearly returns (in excess of the risk-free rate) of 5.00%, 6.32%, -5.20%. Fund B had yearly returns (in excess of the risk-free rate) of 0.00%, 1.32%, -10.20%. Over the same period, the market portfolio had excess returns of 5.00%, 7.20%, -12.00%. Fund A Fund B Market excess excess excess return return return Year 1 5.00% 0.00% 5.00% Year 2 6.32% 1.32% 7.20% Year 3 -5.20% - 10.20% -12.00% The risk-free rate is 3% per year. What is the alpha of Fund A? Same data as Question 5. What is Fund B's beta? Assuming you follow your (correct) answer to question 9, what would be the market beta of your portfolio
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