Calculate the expected return for omega fund

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The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information is available for three mutual funds, all assumed to be efficient, as follows:

Mutual Funds                SD(%)
Affiliated                       0.24
Omega                         0.15
Ivy                               0.14

Based on the Capital Market Line (CML), Calculate the EXPECTED RETURN for Omega fund (write the number as a fraction and round the answer to two decimal number) Round your answer to 2 decimal places.

Reference no: EM133072702

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