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In the past 10 years Riverpark fixed income mutual fund had an annualized annual return of 17% and its beta is known to have been
In the past 10 years Riverpark fixed income mutual fund had an annualized annual return of 17% and its beta is known to have been 1.25. The market portfolio during that time had an annual return of 12.56%, while the risk free rate has been 0.8% on average. Which of the following statement(s) is correct? 1. Using CAPM. Riverpark fixed income fund has outperformed the market. II. Using CAPM. Riverpark fixed income fund has underperformed the market. III. The Jensen's alpha with the CAPM model is 0.25% for Riverpark fixed income fund. IV. The Jensen's alpha with the CAPM model is -0.25% for Riverpark fixed income fund. V. The Jensen's alpha with the CAPM model is 1.5% for Riverpark fixed income fund. VI. The Jensen's alpha with the CAPM model is 1.5% for Riverpark fixed income fund
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