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Practice Problem Suppose you manage an active mutual fund with an expected rate of return of 16% and a standard deviation of 25%. The T-bill rate is 4%. Your only competitor is an index fund that has an expected return of 12% and a standard deviation of 20%. What are the slopes of CAL of an active mutual fund and CML? SCAL SCML = What is the maximum fee you could charge (as a percentage of the investment deducted at the end of the year) that would still leave your client indifferent between the index fund and your fund? (hint: when will your client be indifferent between your fund and the index fund?)