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Joel Foster is the portfolio manager of the SF Fund, a $3 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 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 1.60 B 675,000 0.50 750,000 1.40 D 500,000 0.75 $3,000,000 0 10.56% 10.83% 11.96% 11 390 5.00%. What rate of return should investors expect (and require) on this fund? Stock Amount Beta A $1,075,000 1.60 B. 675,000 0.50 750,000 1.40 D 500,000 0.75 $3,000,000 10.56% O 10.83% O 11.96% 11.38% 11.67%
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