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you are an investment analyst researching shares of Fund A and Fund B. You beleive that Fund A shares will provide 13% return and Fund
you are an investment analyst researching shares of Fund A and Fund B. You beleive that Fund A shares will provide 13% return and Fund B shares will provide 15% return. Assume the market return is 12% and the risk-free rate is 6%. If the beta of Fund A shares is 1.1 and the beta of Fumd B shares is 1.6, calculate the alphas of both shares and explain which share you will buy
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