Joel Foster is the portfolio manager of the SF Fund, a $$10$ 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 $4\mathrm{.}50\%.$ What rate of return should investors expect $($and require$)$ on this fund?

Stock

Amount

A

B

C

$$1$mil

D $$4$mil

$1\mathrm{.}70$

$13\mathrm{.}83\%$

$12\mathrm{.}85\%$

$11\mathrm{.}56\%$

$14\mathrm{.}01\%$

$9\mathrm{.}38\%$