Question: Please include equations 24. CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return of 11% this year.
24. CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is .8. (LO12-2) a. If the rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%, what expected rate of return would you demand before you would be willing to invest in this mutual fund? b. Is this fund attractive
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