One lesson you learnt from this class is to invest early. Luckily, your company provides 401K investment plan, which allows you to invest in fund AggInv, which provides an expected return of 9%. Suppose that the expected market return is 8% and the risk-free rate is 3% per year. (a) If the CAPM model holds, what is the beta of fund AggInv? (b) If you lower your investment goal and invest over a longer horizon, you may choose a fund SafeP with an expected to return of 7.5% a year, what is the beta of the fund? How much less risk will you bear? (c) In order to spread out your investment risk, you formed a portfolio using the two funds. If your objective is to earn the same return as the market when the market portfolio cannot be invested directly, how would you construct your portfolio? What should be the portfolio beta in this case? (d) Suppose the actually return of AggInv is 8.8%, should you invest in Fund AggInv from the perspective of over- or under-investment? In this case, does your investment in the fund have a positive or negative NPV, and why?