George wants to evaluate the following investment options. He has collected the information below from the latest performance report for the VGT mutual fund. Use CAPM to approximate the expected return in each of the mutual fund categories. Assume that the risk- free investment is based on a 60- day U.S. Treasury Bill with a return of 3.85% per year.

Question

Quizplus · Accepted Answer

The Answer is Fund A: RS = 15.03%
Fund B: RS = 17.25% Fund C: RS = 23.62%

George Wants to Evaluate the Following Investment Options