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 14.7% 36% 2.2
Diamonds 11% 31.30% 2.7
Market 4.5% 13% 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?
The return on your portfolio would have been round to two decimal places.