5.(15points).Assume that you are the portfolio manager of the Loredo Fund, a $3million hedge fund that contains the followings tocks. The required rateofreturnon the market is 11.00% and the risk-free rate is2.00%.What rate of return should investors expect (and require)on this fund?Do not round your intermediate calculations. *******PLEASE DO NOT COPY OTHER CHEGG WORK*******

5. (15 points). Assume that you are the portfolio manager of the Loredo 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 2.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock A B Amount $1,075,000 $675,000 $750,000 $500,000 $3,000,000 Beta 1.20 0.50 1.40 0.75