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Section C (4 Mark)The expected return for the market is 12 percent, with a standard...

Section C (4 Mark)

The expected return for the market is 12 percent, with a standard deviation of 20 percent. The expected risk-free rate is 8 percent. Information is available for three mutual funds, all assumed to be efficient, as follows:

Calculate the expected return on each of these portfolios respectively.

A.

11%,11.4% and 11.80%

B.

10.70%,11% and 11.25%

C.

9%,9.50% and 10.50%

D.

8.50%,10.50% and 10.80%

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