Margaret and Kate are diversified investors. Each of them has invested in a profesiionally managed investment fund. The following data reflects the most recent annual performance of these investment funds:

$\backslash$table$[[,$Net returns to investors,Fund systematic risk $("")],[$Margaret$\text{'}$s fund:,$15\mathrm{.}4\%,1\mathrm{.}9],[$Kate$\text{'}$s fund:,$12\mathrm{.}3\%,1\mathrm{.}2]]$

It should be assumed that the risk$-$free rate of interest $(r_F)$ is $3\%$ and that the expected return on the market portfolio $E(r_M)$ is $10\%.$

Required:

Explain $($with detailed supporting calculations$)$ whether Margaret and$/$or Kate should be satisfied with these net returns from their investment funds.