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 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect (and require) on this fund?

   Company	Amount	Beta
   Stock A	$925,000	1.20
   Stock B	$675,000	0.50
   Stock C	$900,000	1.40
   Stock D	$500,000	0.75
   	$3,000,000

   		11.25%
   		10.57%
   		10.80%
   		10.69%
   		10.35%