6% + Ut + Et repassive fund before fees reactive fund before fees = 1.80% =rstock index +1.1* restock index where the error terms ut and t are independent over time and of each other, have zero means E(u+) = E(+) = 0, and volatilities of var(u+) = 15% and (var(+) = 4%. The hedge fund uses the same strategy as the active mutual fund, but implements the strategy as a long-short hedge fund, applying 4 times leverage, generating the following return before fees: hedge fund before fees = 4 * (ractive fund before fees - restock index) Question 3 What is the hedge fund's volatility? O a. 17.09% O b. 22.00% c. 16.07% O d. 16.00% e. 6.00%