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In your responses, please type (a) and (b) to differentiate the parts of your answers. A typical hedge fund has a beta of.1, whereas a

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In your responses, please type (a) and (b) to differentiate the parts of your answers. A typical hedge fund has a beta of.1, whereas a typical indexed mutual fund has a beta of 1. a. Under the capital asset pricing model, which type of fund is predicted to have the better expected return? Explain. (1 pt) b. Why might the expected return on the hedge fund be different than what is implied by the capital asset pricing model? Explain. (4 pts)

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