Question: 3. Here are data on five mutual funds: Fund Beta Return Std. Deviation 14 A 6 1.5 4. 12 B 0.5 16 8 1.0 10

3. Here are data on five mutual funds: Fund Beta Return

3. Here are data on five mutual funds: Fund Beta Return Std. Deviation 14 A 6 1.5 4. 12 B 0.5 16 8 1.0 10 6 D 0.5 20 10 2.0 E What is the reward-to-variability ratio and the ranking if the risk-free rate is 3%? Now assume that the zero-Beta form of the CAPM is appropriate. What is the differential return for the funds if R, = 4%

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