Question: Mid cap fund Large cap fund Return 16% 14% Beta .8 Standard Deviation 3.6 2.6 1.6 Expected return of the S&P 500 = 12% Standard

Mid cap fund Large cap fund Return 16% 14% Beta .8

Mid cap fund Large cap fund Return 16% 14% Beta .8 Standard Deviation 3.6 2.6 1.6 Expected return of the S&P 500 = 12% Standard deviation of the market = 2.8 Risk-free rate = 4% Rank the three funds from highest to lowest in terms of reward to risk based on total risk. O market, mid cap, large cap O mid cap, large cap, market large cap, market, mid cap O mid cap, market, large cap large cap, mid cap, market

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