46 of 55 Assume that you are the portfolio manager of the SF Fund, a $4 million hedge fund that contains the following stocks. The required rate of return on the market is 12.00% and the risk-free rate is 2.40%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount ABCD Betal $1,220,000 1.20 $800,000 0.50 $1,260,000 1.40 $720,000 0.75 $4,000,000 a. 14.90% b. 9.60% c. 11.64% d. 10.00% e. 12.40%