Putnam small cap fund has an expected rate of return of 24%, it has a standard...

Putnam small cap fund has an expected rate of return of 24%, it has a standard deviation of 14% and three month treasury is yielding a 4%. Please find the CAL slope of a portfolio formed with Putnam small cap and risk free asset.

		A) 0.84
		B) 1.24
		C) 1.42
		D) 1.71
		E) 6.00

Expert Solution

CAL slope of a portfolio

=(24%-4%)/14%

=1.42

the above is answer based on the data given

jeff jeffy answered 2 years ago

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