PLEASE USE EXCEL TO SOLVE Your investment portfolio is currently invested in two assets: a domestic mutual fund with a beta of 1.2, and treasury bonds with a yield of rF = 2%. Assume the market risk premium (MRP) is 5%. Also assume the standard deviation of the returns on the domestic mutual fund is 25%.

a. According to the CAPM, what is the expected return of the domestic mutual fund?

b. If the expected return of your portfolio is 7%, what is the portfolio weight on the domestic mutual fund?

c. Given your answer to part b, what is the standard deviation of returns for your portfolio? What is the portfolio's beta?

d. You have decided to rebalance the risky portion of your portfolio by splitting it evenly (50/50) between the domestic mutual fund you already own and an emerging markets fund with an expected return of 10%, a standard deviation of 45%, and a correlation with the domestic mutual fund of 0.3. Given this, what will be the standard deviation and beta of the risky portion of your new portfolio?