Te expected return for the market is 12 percent, with a standard deviation of 21 percent. The expected risk free rate is 8 percent. Information is available for live mutual funds, all assumed to be efficinet:
Affiliated: 14%
Omega: 16%
Ivy: 21%
Value Line Fund: 25%
New Horizons: 30%
a) calculate the slope of the CML?
b) calculate the expected return for each portfolio?
c) rank the portfolios in increasing order of expected risk?
d) do any of the portfolios have the same expected return as the market?