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3 4 5 6 7 8 9 10 11 12 13 14 15 16 a). Joel Foster is the portfolio manager of the SF Fund,

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3 4 5 6 7 8 9 10 11 12 13 14 15 16 a). 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 A B D Amount $1,075,000 675,000 750,000 500,000 $3,000,000 Beta 1.2 0.5 1.4 0.75

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