Suppose a psychic tells you that the value-weighted ASX 300 index will earn a return
of -5% while the equal-weighted ASX 300 will earn a return of 10% over the next
year. Suppose the risk free rate is 2%.  Consider the descriptions of the 4 funds below
and then rank the funds in order of their expected returns (based on the information
from the psychic). Provide a brief (20-50 words) explanation for each ranking.

a)  Fund A invests primarily in small-cap stocks in the ASX 300. It frequently
buys on margin.
b)  Fund B investors primarily in large cap stocks in the ASX 300. It frequently
buys on margin.
c)  Fund C invests primarily in large cap stocks in the ASX 300. It is prohibited
from buying on margin.
d)  Fund D invests primarily in small cap stocks. It is prohibited from buying on
margin.