consider a passive mutual fund (whose returns are identical with the market), an active mutual fund, and a hedge fund. To keep the derivations simple, ignore management fees in this question. passive =rstock market = 6% + Ut ractive = 1.8% +1.1 X rstock market + Et The error terms u, and are independent over time and of each other, have zero means E[ut] = E[] = 0 and volatilities of var(u) = 15% and var(e) = 4%. The hedge fund uses the same strategy as the active mutual fund, but implements the strategy as a long-short hedge fund, applying 4 times leverage, generating the following return: Hedge fund TE = 4x (ractive - stock market) a) (5 points) What is the hedge fund's beta? b) (5 points) What is the hedge fund's volatility? c) (5 points) What is the hedge fund's alpha?