(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

12) You are trying to estimate your expected rate of return if you invest in a mutual fund. The mutual fund has the following investments and betas (see first table). If the risk-free rate is 4%, and using your estimated probably distribution for future market returns, calculate the expected rate of return.

Stock	Investment	Beta
A	80	0.75
B	100	1
C	120	1.2
D	100	0.9
E	80	0.75

Probability	Market Return
0.1	-33%
0.2	-0.1
0.4	0.12
0.2	0.25
0.1	0.5

Group of answer choices

10.15%

10.76%

8.55%

9.20%

8.95%