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1 pts As an equity analyst, you have developed the following return forecasts and risk estimates for two different stock mutual funds (Fund T
1 pts As an equity analyst, you have developed the following return forecasts and risk estimates for two different stock mutual funds (Fund T and Fund U): Forecasted Return CAPM Beta Fund T 9% 1.2 Fund U 10% 0.8 Risk Premium 6.1% Risk Free Rate 3.90% Calculate the expected return for each mutual fund according to the CAPM. Calculate the expected return for each mutual fund according to the CAPM. OT: 11.22% and U: 8.78% OT: 6.78% and U: 4.59% OT: 6.1% and U: 3.9% OT: 12% and U: 8% OT: 9% and U: 10%
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