b) Chimutengo Mutual Fund (CMF) is a broad - based fund of stocks and other securities. CMF has been in business for over twenty-five years and has been successful with an expected return of 12% and a volatility of 25%. Currently, in Zamland the risk-free rate of interest is 4%. The CMF's broker suggests that they add a housing capital fund to their current portfolio. The housing capital fund has an expected return of 20%, a volatility of 80% and a correlation of 0.2 with the Chimutengo Mutual Fund. Calculate the required return and recommend whether Chimutengo Mutual Fund should add the housing capital fund to its portfolio. (15 marks)