PART C: PROBLEMS. ANSWER EACH QUESTION WITHIN THE SPACE PROVIDED. FINAL ANSWERS ARE REQUIRED AND SHOULD DISPLAY TWO DECIMAL PLACES. YOU ARE NOT REQUIRED TO DISPLAY A STEP-BY-STEP SOLUTION PROCESS. 1. A mutual fund has $10 million in investments, a beta of 1.05 and a 9.5% required return. The risk-free rate is 4.2%. [14 points] a. Apply the capital asset pricing model to calculate the market rate of return. b. Suppose the fund receives an additional $5 million in investment assets. These new assets are invested in stocks with an average beta of 0.65. Calculate beta for the combined ($15 million) portfolio c. Calculate the required rate of return for the combined ($15 million) portfolio