Question: here is the data in problem 1 Consider the following returns: Note that the exchange rate is stated as beginning of period dollars for pounds.
Consider the following returns: Note that the exchange rate is stated as beginning of period dollars for pounds. What is the average return in each market from the point of view of a US investor and of a UK investor? Given the data in problem 1, what is th from the point of view of a US investor and of a UK investor? Here are data on five mutual funds: 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 Rz=4%
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