Invested in the market portfolio and t-bills

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Reference no: EM131838300

The table below presents performance data for two mutual funds over the last 5 years? -- the Socially Responsible? Fund, and the Diamonds Are Forever Resource Fund. The table also includes information on the returns of the market index and? T-Bills over the same period. Use this information to answer the question that follows.

Return Standard Deviation Beta

Responsible 14.7% 36% 2.2

Diamonds 11% 31.30% 2.7

Market 4.5% 13% 1

T-Bills 1% N/A N/A

If you had invested in the market portfolio and T-Bills in such a way as to match the beta of Diamonds Are Forever, then what return would you have earned?

The return on your portfolio would have been round to two decimal places.

Reference no: EM131838300

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