You are an advisor reviewing fund managers performance over the last year. Your records indicate that government bonds have returned 5% over the period. You have also obtained the following information: Return Standard deviation Beta Market portfolio 0.148 0.52 Fund manager W 0.148 0.36 0.18 Fund manager X 0.160 0.34 0.16 Fund manager Y 0.114 0.34 2.60 Fund manager Z 0.158 0.56 1.80 Given the information above, which fund manager’s performance shows it lies on the Capital Market Line? A. Fund manager W. B. Fund manager X. C. Fund manager Y. D. Fund manager Z.
You are an advisor reviewing fund managers performance over the last year. Your
records indicate that government bonds have returned 5% over the period. You have
also obtained the following information:
Return Standard deviation Beta
Market portfolio 0.148 0.52
Fund manager W 0.148 0.36 0.18
Fund manager X 0.160 0.34 0.16
Fund manager Y 0.114 0.34 2.60
Fund manager Z 0.158 0.56 1.80
Given the information above, which fund manager’s performance shows it lies on the
Capital Market Line?
A. Fund manager W.
B. Fund manager X.
C. Fund manager Y.
D. Fund manager Z.
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