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Business, 28.11.2019 06:31 reemoe

Assume that you are 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
$3,000,000

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