b. False 31. Junk bonds are high-risk, high-yield debt instruments. They are often used to finance leveraged buyouts and mergers, and to provide financing to companies of questionable financial strength. a. True b. False Vicate the answer choice that best completes the statement or answers the question, 32. Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the followin stocks. The required rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of re should investors expect and require) on this fund? Do not round your intermediate calculations. Beta Stock Amount $1,125,000 $675,000 $700,000 $500,000 $3,000,000 1.20 0.50 1.40 0.75 a. 12.13% b. 12.80% c. 10.13% d. 11.13% e. 11.68% Powered by Cognero