Evaluate the following fund using single-index


Evaluate the following fund using single-index model:

Fund 1:

Alpha (a): 1.1

Beta (B): 1.9

Variance (e): 100

Market risk expected return is 8%, and an expected standard deviation =12.25% or market variance 150.

Using the Single-Index Model (where the returns on each fund are related only to the market, i.e., E(r) = α +β E(RM)), determine the expected return, variance and standard deviation.

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Finance Basics: Evaluate the following fund using single-index
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