Question: TASK 6 A mutual fund manager expects her portfolio to earn a rate of return of 10% t The beta of her portfolio is 0.9.

 TASK 6 A mutual fund manager expects her portfolio to earn

TASK 6 A mutual fund manager expects her portfolio to earn a rate of return of 10% t The beta of her portfolio is 0.9. 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 12%, should you invest in this mutual fund? Calculate the expected rate of re CAPM. (After your calculation do not forget to actually answer the your answer!) [7 points for the calculation and 8 points for the answer explanation] hisyear. turn for this portfolio by using

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