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Memphic Memphic
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Posts: 728
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6 years ago
The expected return on the precious metals fund is closest to:
A) -3%
B) 4%
C) 1%
D) 10%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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Replies
wrote...
6 years ago
C
Explanation:  C)   =   =   = -0.3
ri = rf +   × (E[Rp] - rf) = .04 + (-0.3)(.14 - .04) = .01
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