Blackrock is a $3 billion hedge fund that contains the stocks listed below. Assume that the required rate of return on the market is 11 percent and the risk-free rate is 5 percent. What rate of return should investors expect (and require) on this fund?

Stock Amount Beta

A $1,075,000 1.20

B 675,000 0.50

C 750,000 1.40

D 500,000 0.75

$3,000,000