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As an equity analyst, you have developed the following return forecast and risk estimates for different funds: Requiled return = rer ti B( harket risk

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As an equity analyst, you have developed the following return forecast and risk estimates for different funds: Requiled return = rer ti B( harket risk premin) a. Assuming a risk-free rate of 5% and an expected market risk-premium of 5,7%, calculate the required return for each fund according to the CAPM. b. Using the required returns from (a) and betas, draw the SML and the three funds. c. Which funds are over, under or properly valued

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