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OlgaM077 [116]
3 years ago
7

Ramos is an aggressive investor and likes to win at everything. He knows that it is impossible to win or beat the averages all o

f the time, but he wants to try! Given his attitude, Ramos should select what type of investment if his number one goal is to beat the market?
a) Actively managed mutual fund.
b) Index-based ETF.
c) Index mutual fund.
d) Bond index ETF.
Business
1 answer:
Kamila [148]3 years ago
3 0
The correct answer would be index mutual fund
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According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock of 12, and a ris
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The question is incomplete. Here is the complete question

According to the CAPM, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?

Answer:

8%

Explanation:

The expected return on security is 13.6%

The stock beta is 1.2

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