Year Chelle Computer General index 1 37 15 2 9 13 3 -11 14 4 8 -9 5 11 12 6 4 9 Based on this information Compute the following:

Year                                       Chelle Computer                              General index 1                                                              37                                                           15 2                                                              9                                                              13 3                                                           -11                                                           14 4                                                             8                                                             -9 5                                                            11                                                           12 6                                                              4                                                              9 Based on this information Compute the following: a. The correlation coefficient between Celle computer and the general index. The beta for the Celle Computer Company. As an equity analyst, you have developed the following return forecasts and risk estimates for two different stock mutual funds.  (Fund T and Fund U). Forecasted Return                                              CAPM beta Fund T                                  9.0%                                                                      1.20 Fund U                                                 10.0                                                                        .80 If the risk free rate is 3.9% and the expected market risk premium (i.e. E(Rm) –RFR) is 6.1% calculate the expected return for each mutual fund according to the CAPM. According to your analysts, are funds T and U overvalued, undervalued or properly valued? If the current period return for the market is 12% and for Rader Tire it is 11%. Are superior results being obtained for either index beta?