Question and answer
What is the market risk premium (rM – rRF)? Round your answer to two decimal places.
What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.
What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.
Would you expect the standard deviation of Fund P to be less than 14%, equal to 14%, or greater than 14%?
less than 14%
greater than 14%
equal to 14%
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