The MacManus Mutual Fund (MMF) is a 'small-cap growth fund that investments primarily in stocks with a market capitalization in the bottom 10% of US stocks and with relatively high sales and earnings growth. Suppose that MMF has a market beta of 1.6. The expected market return is 9% per year and the risk-free rate is 2% per year. Answer the following questions. Clearly label the sub-parts in your typed response. 1. What should be the expected return for MMF according to the CAPM? (2 points) 2. Suppose that MMF earned a return of 20%. Briefly discuss the extent to which this performance indicates investment skill on the part of MMF's managers. (2 points) 3. Is the portfolio held by MMF likely to be on the mean-variance frontier for the US equity market? Briefly explain. (2 points)