You are trying to estimate your expected rate of return if you invest in a mutual fund. The mutual fund has the following investments and betas (see first table). If the risk-free rate is 4%, and using your estimated probably distribution for future market returns, calculate the expected rate of return. Stock Investment Beta A 80 0.75 B 100 1 120 1.2 D 100 0.9 E 80 0.75 Probability Market Return 0.1 -33% 0.2 -0.1 Probability Market Return 0.1 -33% 0.2 -0.1 0.4 0.12 0.2 0.25 0.1 0.5 10.76% 8.55% 9.20% 0 8.95% 0 10.15%