Assume that you are the portfolio manager of the SF Fund, a $6 million hedge fund that contains the following stocks. The required rate of return on the market is 9.50% 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 A B C D Amount $1,530,000 $1,800,000 $1,770,000 $900,000 $6,000,000 a. 9.37% Ob. 7.10% c. 9.23% Od. 6.97% Ce. 11.72% Beta 1.20 0.50 1.40 0.75

Assume that you are the portfolio manager of the SF Fund, a $6 million hedge fund that contains the following stocks, The required rate of return on the market is 9.50% and the risk-free rate is 240%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. a. 9.37% b. 7.10% c. 9.23% d. 6.97% 8. 11.72%