Suppose that the riskfree rate of interest that can be earned is 2 (IR, 002), and the

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Suppose that the riskfree rate of interest that can be earned is 2 (IR, 002), and the expected market return and volatility are given by RM 00875 and am 01711 Further, if a fund's risk appetite is such that it wants to have a 975 probability of not losing more than 15 in one year, what should be the fund's beta (2 marks) (b) Carefully distinguish between liquidity trading risk and liquidity funding risk (2 marks) (c) What are the two missteps in model building Give a brief description for each of them (