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

Select the correct answer.

a. 11.43%

b. 11.48%

c. 11.38%

d. 11.53%