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question 1 and 2 Accessibility Mode Print Find Immersive Read Make-up test 1. The ABC mutual fund holds 3 stocks. The market's required rate of

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question 1 and 2
Accessibility Mode Print Find Immersive Read Make-up test 1. The ABC mutual fund holds 3 stocks. The market's required rate of return is 15.0%, the risk-free rate is 7.0%. Based on the SML, what is the rate of return of the fund? If the expected rate of return is 15.5%, should we invest in this fund? The fund's assets are as follows: Stock A B Investment $ 200,000 300,000 500,000 Beta 1.50 1.00 1.20 2. ABC Corporation's stock has an expected return of 12.00%, a beta of 1.2, and is in equilibrium If the risk-free rate is 5.00%, what is the market rate of return

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