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Problem 12-24 CAPM and Expected Return (LO2) A mutual fund manager expects her...

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Accounting

Problem 12-24 CAPM and Expected Return (LO2)
A mutual fund manager expects her portfolio to earn a rate of return of 8% this year. The beta of her portfolio is 0.8. The rate of
return available on risk-free assets is 6% and you expect the rate of return on the market portfolio to be 16%.
a. What expected rate of return would you demand before you would be willing to invest in this mutual fund?
Note: Do not round intermediate calculations. Enter your answer as a whole percent.
b. Is this fund attractive to you?
a. Expected rate of return
b. Is this fund attractive to you?
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