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

3. Here are data on five mutual funds: Fund Return Std. Deviation Beta A 14 6 1.5 B 12 4 0.5 C 16 8 1.0 D 10 6 0.5 E 20 10 2.0 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 R3 = 4%

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