CAPM and Expected Return. A mutual fund manager expects her portfolio to earn a rate of

return of $11\%$ this year. The beta of her portfolio is $\mathrm{.}8.($LO$12-2)$

a$.$ If the rate of return available on risk$-$free assets is $4\%$ and you expect the rate of return on the

market portfolio to be $14\%,$ what expected rate of return would you demand before you

would be willing to invest in this mutual fund?

b$.$ Is this fund attractive?