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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):

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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): If the risk-free rate is 3.9 percent and the expected market risk premium is 6.1 percent, calculate the expected return for Fund T according to the CAPM. Answer in percent form. Calculate the expected return for Fund U according to the CAPM. Answer in percent form. Does Fund U as currently priced fall directly on the security market line (SML), above the SML, or below the SML. According to your analysis, is Fund T overvalued, undervalued, or properly valued? According to your analysis, is Fund U overvalued, undervalued, or properly valued

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