Question: Problem 12-24 CAPM and Expected Return (LO2) A mutual fund manager expects her portfollo to earn a rate of return of 10% this year. The

 Problem 12-24 CAPM and Expected Return (LO2) A mutual fund manager

Problem 12-24 CAPM and Expected Return (LO2) A mutual fund manager expects her portfollo to earn a rate of return of 10% this year. The beta of her portfolio is 0.9 . The rate of return available on risk-free assets is 3% and you expect the rate of return on the market portfolio to be 13%. a. What expected rate of return would you demand before you would be willing to invest in this mutual fund? Note: Do not round intermediate calculations. Enter your answer as a whole percent. b. Is this fund attractive to you

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