Question: . Consider the table below showing return and risk for two investment funds. Mutual Funds Returns Standard Deviation Fund A : A well diversified stock

. Consider the table below showing return and risk for two investment funds.

Mutual Funds Returns Standard Deviation

Fund A : A well diversified stock fund 8% 17%

Fund B: A risk-free fund consisting entirely of Treasury bills 3.5% 0%

C Calculate the return for a portfolio consisting of 130 % in fund A in the context of CAPM. Show calculations.

D Calculate the standard deviation for a portfolio consisting of 130 % in fund A in the context of CAPM. Show calculations.

Show calculations with repsect to Excel

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