5.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 10.00% and the risk-free rate is 1.90%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations.

Stock Amount Beta

A. $1,280,000 1.20

B. $900,000 0.50

C. $1,100,000 1.40

D. $720,000 0.75

$4,000,000