Should invest in mutual fund and why

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Reference no: EM132993474

Problem 1: A mutual fund manager expects her portfolio to earn a rate of return of 13.125% this year. The fund has a beta of 1.75. The risk-free rate is 4.5% and the expected return on the market is 10%. Should you invest in her mutual fund?

a) no
b) yes
c) not enough information

Reference no: EM132993474

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