- A Mutual Fund Manager Expects His Portfolio To Earn A Rate Of Return Of 11 This Year The Beta Of His Portfolio Is 0 6 1 (63.79 KiB) Viewed 24 times
A mutual fund manager expects his portfolio to earn a rate of return of 11% this year. The beta of his portfolio is 0.6.
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
A mutual fund manager expects his portfolio to earn a rate of return of 11% this year. The beta of his portfolio is 0.6.
A mutual fund manager expects his portfolio to earn a rate of return of 11% this year. The beta of his portfolio is 0.6. The risk-free rate is 4%, and the market risk premium is 10%. Should you invest in this mutual fund? Select one: a. Don't invest; return is low relative to the risk. b. Invest; expected return is less than required return given its risk. Don't invest; return is high relative to the risk. d. Invest; expected return is greater than required return given its risk. C.