A mutual fund manager expects her portfolio to earn a rate of return of 9%...
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Accounting
A mutual fund manager expects her portfolio to earn a rate of return of 9% this year. The beta of her portfolio is .8. Assume rate of return available on risk-free assets is 2% and you expect the rate of return on the market portfolio to be 12%.
Calculate the expected rate of returnt hat investors will demand of the portfolio. (in %)
Should you invest int his mututal fund? Yes or no.
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