Which CAPM formula is correct for mutual fund analysis?
The first one is:
Ri = Rf + Bi (Rm - Rf)
And the second one is:
Ri = Rf + Si/Sm*(Rm - Rf)
Which formula should be used where?
I found these two formulas here: http://www.traderji.com/mutual-funds-discussion-forum/30123-performance-measures-mutual-funds.html
The first one is:
Ri = Rf + Bi (Rm - Rf)
And the second one is:
Ri = Rf + Si/Sm*(Rm - Rf)
Which formula should be used where?
I found these two formulas here: http://www.traderji.com/mutual-funds-discussion-forum/30123-performance-measures-mutual-funds.html