- 5 A Friend Tells You About A Mutual Fund Called The Global Asset Fund The Fund S Expected Return And Beta For Next Yea 1 (32.69 KiB) Viewed 46 times
5) A friend tells you about a mutual fund called the Global Asset Fund. The fund's expected return and beta for next yea
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5) A friend tells you about a mutual fund called the Global Asset Fund. The fund's expected return and beta for next yea
5) A friend tells you about a mutual fund called the Global Asset Fund. The fund's expected return and beta for next year are shown in the table below. The expected return and beta of the risk-free asset and the market portfolio are also shown in the table. Consider an alternative investment strategy of investing in a portfolio on the Security Market Line with the same beta as the Global Asset Fund. What return should you expect to earn from that portfolio? Expected Return 5.5% Beta 0 Asset Risk-Free Market Portfolio Global Asset Fund 11.5% 1 16% 1.59