Business, 27.09.2019 02:00 keilyjaramillo2870

Joel foster is the portfolio manager of the sf fund, a $3 million hedge fund that contains the following stocks. the required rate of return on the market is 11.00% and the risk-free rate is 5.00%. what rate of return should investors expect (and require) on this fund?

stock amount beta
a $1,075,000 1.20
b 675,000 0.50
c 750,000 1.40
d 500,000 0.75
total 3,000,000

(a) 10.56%
(b) 10.83%
(c) 11.11%
(d) 11.38%
(e) 11.67%

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Joel foster is the portfolio manager of the sf fund, a $3 million hedge fund that contains the follo...

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