Suppose the market risk premium is 9% and the risk free rate is 6%. In a...
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Suppose the market risk premium is 9% and the risk free rate is 6%. In a period where the market moved up by 30% during a single year, you observe the following risk and return data for mutual funds: Fund A B C Return O Fund A O More information needed Fund B O Fund C 20% 24% 23% Beta 0.8 1.2 1.0 Which fund has offered the best alpha, using CAPM as benchmark? Suppose the market risk premium is 9% and the risk free rate is 6%. In a period where the market moved up by 30% during a single year, you observe the following risk and return data for mutual funds: Fund A B C Return O Fund A O More information needed Fund B O Fund C 20% 24% 23% Beta 0.8 1.2 1.0 Which fund has offered the best alpha, using CAPM as benchmark?
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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