Question: Computational 06 - Chapters 12 and 13 Satved 2 A mutual fund manager expects her portfolio to earn a rate of return of 14% this

 Computational 06 - Chapters 12 and 13 Satved 2 A mutual

Computational 06 - Chapters 12 and 13 Satved 2 A mutual fund manager expects her portfolio to earn a rate of return of 14% this year. The beta of her portfolio is 8 Assume rate of return available on risk-free assets is 7% and you expect the rate of return on the market portfolio to be 17% a. Calculate the expected rate of return that investors will demand of the portfolio 12 points Expected rate of return b. Should you invest in this mutual fund? Hint Print ONo Yes References

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