Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A mutual fund manager expects her porfolio to earn a rate of return of 11% this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%, Should you invest in this mutual fund? (L02)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M943901

Have any Question? 


Related Questions in Basic Finance

Assume that the risk-free rate is 45 percent and that the

Assume that the risk-free rate is 4.5 percent, and that the market risk premium is 6.7 percent. If a stock has a required rate of return of 15.2 percent, what is its beta?

Access the fasb online website and familiarize yourself

Access the FASB Online website and familiarize yourself with the contents. Write a 350- to 700-word paper in which you answer the following questions: • What is the FASB Codification System? • What is the purpose of the ...

Finance assignmentdo the following problems1assume the hong

Finance Assignment Do the following problems 1. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today, an Australian do ...

Your company has just sold a piece of property for 500000

Your company has just sold a piece of property for $500,000, but under the sales agreement, it won't receive the $500,000 until ten years from today. What is the present value of $500,000 to be received ten years from to ...

A firm is expected to pay a dividend of 355 next year and

A firm is expected to pay a dividend of $3.55 next year and $3.85 the following year. Financial analysts believe the stock will be at their price target of $120 in two years. Compute the value of this stock with a requir ...

Impact of economic crises on interest rates when economic

Impact of Economic Crises on Interest Rates : When economic crises in countries are due to a weak economy, local interest rates tend to be very low. However, if the crisis was caused by an unusually high rate of inflatio ...

5 pages neededevaluate financial markets securities and

5 pages needed Evaluate Financial Markets, Securities, and Institutions Along with Associated Risks In a paper, provide an evaluation of the following points: 1. Financial engineering has been disparaged as nothing more ...

No plagiarism pleasethe sarbanes-oxley act of 2002 sox was

No Plagiarism please The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange C ...

A firm has common stock of 80 paid-in surplus of 160 total

A firm has common stock of 80, paid-in surplus of 160, total liabilities of 350, current assets of 420, and fixed assets of 630. What is the amount of the shareholders' equity?

You are chairperson of the investment fund for the eastern

You are chairperson of the investment fund for the Eastern Football League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $100,000 after 10 years at an 8 perce ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate