Exam $2$

$1$:$15$:$21$ remaining

Question $16(1$ point$)$

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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 $11\mathrm{.}00\%$ and the risk$-$free rate is $2\mathrm{.}00\%.$ What rate of return should investors expect $($and require$)$ on this fund? Do not round your intermediate calculations.

$\backslash$table$[[$Stock$,$Amount,Beta$],[$A$,$$$1,075,000,1\mathrm{.}20],[$B$,$$$675,000,0\mathrm{.}50],[$C$,$$$750,000,1\mathrm{.}40],[$D$,$$$500,000,0\mathrm{.}75],[$$$3,000,000,]]$

$11\mathrm{.}16\%$

$10\mathrm{.}82\%$

$9\mathrm{.}93\%$

$9\mathrm{.}37\%$

$9\mathrm{.}71\%$

Question $17(1$ point$)$ Saved