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Joel Foster is the portfolio manager of the SF Fund, a $3.35 million hedge fund that contains the following stocks. The required rate of return
Joel Foster is the portfolio manager of the SF Fund, a $3.35 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 1,100,000 1.40 D 500,000 0.75 3,350,000 Select the correct answer. a. 11.39% b. 11.44% c. 11.34% d. 11.49% e. 11.54%
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