Assume that you are the portfolio manager of the Technitron Fund, a $6 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? Do not round your intermediate calculations.

Stock Amount Beta

KAL $2,775,000 1.20

LMC $2,175,000 0.78

NXF $1,050,000 2.10

Answers:	A. 14.24%
	B. None of these
	C. 15.26%
	D. 12.85%
	E. 16.96%

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