as an equity analyst you have a developed The following return forecasts and risk estimates for two different stock mutual funds

use only the data shown in the proceeding table the risk free rate is 4.5% and they expected market risk premium is 6.3%, calculate the expected return for each mutual fund according to the CAPM. found your answers to two decimal places.

Problem 7-06 As an equity analyst, you have developed the following return forecasts and risk estimates for two different st mutual funds (Fund T and Fund U): CAPM Beta Forecasted Return 10.0% Fund T 1.10 0.70 Fund U 8,0 Using only the data shown in the preceding table: a. If the risk-free rate is 4.5 percent and the expected market risk premium (.e., E(RM) - RFR) is 6.3 percent calculate the expected return for each mutual fund according to the CAPM. Round your answers to two deci places. Fund T: % Fund U: %