The table below presents performance data for two mutual funds over the last 5 years -- the Socially Responsible Fund, and the Diamonds Are Forever Resource Fund. The table also includes information on the returns of the market index and T-Bills over the same period.
Use this information to answer the question that follows.
|
Return
|
Standard Deviation
|
Beta
|
|
|
Responsible
|
11.6%
|
36%
|
1.7
|
|
|
Diamonds
|
11%
|
32.60%
|
2.5
|
|
|
Market
|
5.5%
|
17%
|
1
|
|
|
T-Bills
|
1%
|
N/A
|
N/A
|
|
If you had invested in the market portfolio and T-Bills in such a way as to match the beta of Diamonds Are Forever, then what return would you have earned?
Please show your work.