Question
You have the following forecasts: Return on a stock with a beta of .6 = 12% Risk-free rate = 3% Rate of return on the
- You have the following forecasts:
- Return on a stock with a beta of .6 = 12%
- Risk-free rate = 3%
- Rate of return on the market portfolio = 30%
If the CAPM is valid, should you invest in this fund? Explain why or why not.
Explain (a) what the separation/mutual fund theorem is, and (b ) why this property is important (i) to investors, and (ii) to portfolio/asset managers.
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Enhancing Financial Inclusion Through Islamic Finance Volume II
Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag
1st Edition
3030399389,3030399397
