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 1.80%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations.

Stock		Amount		Beta
A		$1,380,000		1.20
B		$1,140,000		0.50
C		$840,000		1.40
D		$640,000		0.75
		$4,000,000

a. 9.76%

b. 8.20%

c. 9.69%

d. 7.96%

e. 11.51%