The Table Below Shows Selected Financial Data for the Turtle

question 104

Multiple Choice

The table below shows selected financial data for the Turtle Income fund, the Hare Growth fund, the market portfolio and the risk free asset. If you wanted to build a portfolio out of T-Bills and the market portfolio to mimic the performance of the Turtle Income Fund, what proportion would you invest in the market portfolio? $$\begin{array} { | c | c | c | c | c | } \hline & \text { Turtle } & \text { Hare } & \text { Market } & \text { Risk Free } \\\hline \begin{array} { c } \text { Expected } \\\text { Return }\end{array} & 10 \% & 13 \% & 12 \% & 5 \% \\\hline \text { Std Dev. } & 8.5 \% & 17.9 \% & 11.9 \% & 0 \% \\\hline \text { Beta } & 0.7143 & 1.4 & 1 & 0 \\\hline\end{array}$$

• A)37.1%
• B)50.0%
• C)71.4%
• D)105.7%
• E)140.0%

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