Question 6

The risk-free interest rate is 4% and the expected return on the market portfolio is 10%. Scott, a portfolio manager, runs a portfolio that has a beta of 2/3 and an average annual return of 9% per year.

Based on the CAPM, what is the abnormal return (i.e. ) of Scotts portfolio?

______%

(Note: if you find out that theres no abnormal return, then just input 0 as your answer.)