Question
Kaiser is the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on
Kaiser 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 | 1.20 |
| B | 675,000 | 0.50 |
| C | 750,000 | 1.40 |
| D | 500,000 | 0.75 |
|
| $3,000,000 |
|
*Show your formulas and formula inputs.
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Digital Finance Big Data Start-ups And The Future Of Financial Services
Authors: Perry Beaumont
1st Edition
0367146797, 978-0367146795
