Trojan Investment LLC that has recently launched a new fund called Trojan Explorer. Although the fund has
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Question:
Find a portfolio of the risk-free asset and the Trojan Explorer fund that ha s the same volatility as the S&P 500. What is the weights of the portfolio? What is the expected return of the portfolio?
Suppose that the correlation between the Trojan Explorer fund and the S&P 500 is 0.50. Find the beta of the fund.
According to the CAPM (using the S&P500 as the market), what should the expected return of the fund be? What is the alpha of the fund?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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