Beta
A client owns a mutual fund with a beta of 1.4.
If the overall stock market increases by approximately 10%, which of the following would be the best estimate of the fund’s return based solely on its beta?
- 4%
- 10%
- 14%
- 24%
A client owns a mutual fund with a beta of 1.4.
If the overall stock market increases by approximately 10%, which of the following would be the best estimate of the fund’s return based solely on its beta?