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):You should provide detailed solutions which show clearly how your final answer is obtained

	Forecasted Return	CAPM Beta
Fund T	9.00%	1.20
Fund U	10.00%	0.80

3.a. (6 points) If the risk-free rate (RFR) is 3.9% and the expected market risk premium (i.e., E(R_M) RFR) is 6.1%, calculate the expected return for each mutual fund according to the CAPM.

3.b. (4 points) Decide which fund is overvalued, undervalued or properly valued and explain why?

You should provide detailed solutions which show clearly how your final answer is obtained