question archive Your friend has invested in a mutual fund which has given you 12% returns over the past year
Your friend has invested in a mutual fund which has given you 12% returns over the past year
Subject:FinancePrice: Bought3
Your friend has invested in a mutual fund which has given you 12% returns over the past year. Over the same year the risk-free rate stands at 5% and the market gave a return of 10%. In comparison, the bank fixed deposit gave you an interest rate of 6% p.a. Knowing that you are studying Finance at IIM Nagpur, he comes and asks you if he should be happy with his investment. What is your judgement of the situation?
