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Question 2 6 The Horizons Bull Plus Fund seeks expected returns that are two times ( 2 0 0 % ) the performance of the

Question

26

The Horizons Bull Plus Fund seeks expected returns that are two times

(200 %)

the performance of the market portfolio. If the fund is on the SML and if the risk free rate is

2 %

and the expected return on the market is

10 %,

then what is the Beta coefficient for the Bull Plus Fund? Round your answer to one decimal place.

Answer:

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