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%