1. 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 12.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on this fund? 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 Total $3,000,000

   		10.56%
   		10.83%
   		11.11%
   		11.38%
   		12.14%