Question 4 and 5 Help ( PLEASE DON'T USE EXCEL) 4.Compare the actual 12-month ROR (Please show your work.)of MF Z and its required rate of return,comment on the performance of MF Z.5.Leah has decided to invest $7,500 in (Please show your work.)Mutual Fund X and $2,500 in Mutual Fund Y.What is her portfolio's beta exposure? Leah Vine has gathered the following information of three Mutual Funds (MFs). The beta risksof the MFs are presented in the following table. During the same 12-month investment period,the market returned 15% and the risk-free rate was 0.25%.Mutual FundBeta riskActual returnRequired rate of return (CAPM)1.0015%Y0.406%3.1046.5%

The question can be answered by determining the expected return for the stock using the capital…

4. Compare the actual 12-month ROR (Please show your work.) of MF Z and its required rate of return, comment on the performance of MF Z. 5. Leah has decided to invest $7,500 in (Please show your work.) Mutual Fund X and $2,500 in Mutual Fund Y. What is her portfolio's beta exposure?

4. Compare the actual 12-month ROR (Please show your work.) of MF Z and its required rate of return, comment on the performance of MF Z. 5. Leah has decided to invest $7,500 in (Please show your work.) Mutual Fund X and $2,500 in Mutual Fund Y. What is her portfolio's beta exposure?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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Question

Question 4 and 5 Help ( PLEASE DON'T USE EXCEL)

4.
Compare the actual 12-month ROR (Please show your work.)
of MF Z and its required rate of return,
comment on the performance of MF Z.
5.
Leah has decided to invest $7,500 in (Please show your work.)
Mutual Fund X and $2,500 in Mutual Fund Y.
What is her portfolio's beta exposure?

Leah Vine has gathered the following information of three Mutual Funds (MFs). The beta risks
of the MFs are presented in the following table. During the same 12-month investment period,
the market returned 15% and the risk-free rate was 0.25%.
Mutual Fund
Beta risk
Actual return
Required rate of return (CAPM)
1.00
15%
Y
0.40
6%
3.10
46.5%

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