Question: Suppose a mutual fund has earned an 11% annual return, the funds = 1.4, the market return RM = 9%, and the risk-free rate RF

Suppose a mutual fund has earned an 11% annual return, the funds = 1.4, the market return RM = 9%, and the risk-free rate RF = 4%. Calculate the mutual funds alpha (MF). On a risk-adjusted basis, did the fund beat the market?

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