Question: The risk-free rate, average returns, standard deviations, and betas for Fund A and the S&P 500 (proxy for the market portfolio) are give below: Fund

The risk-free rate, average returns, standard deviations, and betas for Fund A and the S&P 500 (proxy for the market portfolio) are give below:

Fund Avg. Return Std. Dev Beta
Fund A 25% 35% 1.3
S&P 500 14.5% 20% 1.0
Risk-free 5%

What is the M2 measure for Fund A?

1.93%
0.43%
1.43%
0.93%

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