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Sheila Patel calculated that the expected market return is 10% and volatility of the market is 20%. The risk free rate is 5%. If she
Sheila Patel calculated that the expected market return is 10% and volatility of the market is 20%. The risk free rate is 5%. If she knows that cov(RVFX, RM) =200, what will be her estimate for the expected return of VFX?
| a. | 15.00% | |
| b. | 7.50% | |
| c. | 10.00% | |
| d. | 12.50% |
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