$1.$ You are an investment analyst for a small insurance company and have been given an assignment to evaluate two external fund managers $($Binky$\text{'}$s Short$-$Stuff and Linda's Long$-$bets$).$ You have been given the following information for these managers historical performance over the last $5$ years, and know that the risk premium for the market portfolio is $4\mathrm{.}2\%$ and risk$-$free rate is $4\mathrm{.}62\%$:

Fund Actual Average Return Standard Deviation Beta

Binky's Short $11\mathrm{.}75\%14\mathrm{.}5\%1\mathrm{.}35$

Linda's Long $5\mathrm{.}25\%7\mathrm{.}5\%\mathrm{.}85$

A$)$ Using CAPM, calulate the expected return for each manager.