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Please show Excel formula E F F I H B Market Beta A Portfolio The Garrett Fund The Faire Fund Interest Rate Beta 0.75 1.20
Please show Excel formula
E F F I H B Market Beta A Portfolio The Garrett Fund The Faire Fund Interest Rate Beta 0.75 1.20 D Realized Returns 16.50% 20.00961 1.55 2.15 Expected Return Risk Premium Market Risk Premium Interest Rate Risk Premium Risk-Free Rate 0.07 0.03 0.02 Performance Outperform Underperform Required: Using the information in the tables above, please calculate the return predicted by the two-factor model. Then compare those returns to the realized returns of each portfolio and determine if each fund outperformed or underperformed (using output in Cells A12 and 13) expectations. (Use cells A3 to D13 from the given information to complete this question.) Two-Factor Predicted Return Performance Portfolio The Garrett Fund The Faire FundStep by Step Solution
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