Joel Foster is the portfolio manager of the SF Fund, a $3.3 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	1.20
B	675,000	0.50
C	1,050,000	1.40
D	500,000	0.75
	3,300,000

Select the correct answer.

a. 11.34%

b. 11.37%

c. 11.31%

d. 11.40%

e. 11.43%