b$.$ Characterize in one short paragraph the advantage of your fund over the passive fund.

$28.$ Your client ponders whether to switch the $70\%$ that is invested in your fund to the passite portfolio.

a$.$ Explain to your clicnt the disadvantage of the switch.

b$.$ Show him the maximum fee you could charge $($as a percentage of the investment in your fund, deducted at the end of the year$)$ that would leave him at least as well off investing in your fund as in the passive one. $($Him: The fee will lower the slope of his CAL by reducine the expected return net of the fee.$)$