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Author Question: A friend tells you about a mutual fund called the Global Asset Fund. The fund's expected return and ... (Read 46 times)

cnetterville

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on: Apr 25, 2021
A friend tells you about a mutual fund called the Global Asset Fund. The fund's expected return and beta for next year are shown in the table below. The expected return and beta of the risk free asset and the market portfolio are also shown in the table. Consider an alternative investment strategy of investing in a portfolio on the Security Market Line with the same beta as the Global Asset Fund. What return should you expect to earn from that portfolio?

AssetExpected ReturnBeta
Risk-Free5.5%0
Market Portfolio11.5%1
Global Asset Fund16%1.59

◦ 12%
◦ 13%
◦ 14%
◦ 15%
◦ 16%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by cnetterville on Apr 25, 2021

nekcihc358

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cnetterville

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

brbarasa

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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