Assume that over some period, a CAPM was estimated The results are shown below Assume that over the same period, two mutual funds had the following results What can be said about the fund performance Fund A Fund B Actual return 10 Actual return Beta 0 8 Beta 1 2 15 Ri 0 06 0 106,...

Given the security market line in this problem the two f ...

Assume that over some period, a CAPM was estimated. The results are shown below. Assume that over

Question:

Assume that over some period, a CAPM was estimated. The results are shown below.
Assume that over the same period, two had the following results:

What can be said about the fund performance?

Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...