Question
Joel Foster is the portfolio manager of the SF Fund, a $3.4 million hedge fund that contains the following stocks. The required rate of return
Joel Foster is the portfolio manager of the SF Fund, a $3.4 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 5.00%. 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 | 1,150,000 | 1.40 |
| D | 500,000 | 0.75 |
| 3,400,000 |
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Handbook Of Asian Finance REITs Trading And Fund Performance
Authors: David Lee, Greg N. Gregoriou
1st Edition
0128009861, 978-0128009864
