Question: can you answer please Problem 3 (20 points) As an equity analyst, you have developed the following retum forecasts and risk estimates for two different

can you answer please

Problem 3 (20 points) As an equity analyst, you have developed the following retum forecasts and risk estimates for two different stock mutual funds (Fund T and Fund U): 3.a. (6 points) If the risk-free rate (RFR) is 3.9% and the expected market risk premium (i.e., E(RM)-RFR) is 6.1%, calculate the expected return for each mutual fund according to the CAPM. 3.b. (4 points) Decide which fund is overvalued, undervalued or properly valued and explain why

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