question/ A mutual fund manager expects her portfolio to earn a rate of return of 11% this year. The beta of her portfolio is 0.9.

If the rate of return available on risk-free assets is 4% and you expect the rate of return of the market portfolio to be 14%.

#1A- What expected rate of return would you demand before you would be willing to invest in this mutual fund?

#2A- Is this fund attractive? Why?

#3A- How could you mix mutual fund with a risk-free position in Treasury bills to create a portfolio with the same managers but with a higher expected rate of return? what is the rate of the return of the portfolio?