what is the expected return on the hedge fund? for number 7-15

3 analysis she determines that the current risk free rate is ryhurm s Kares espect on ber portholis, bhased on the s the repuired reur on the portfolio? What do the Industrial Aut on further analysis 3'%, while the individual stock answers in part (a Aaren is thinking of adding another stock Offshiore Oil Co, to has a lets od oshore Oil Co, to her portiolio andan espected return of 14%. Should she add red arnd that 7-19 explain why or why not. d. Assuming ihat sie ol does provide hat will be her pod a invests another $100,000 in Olfshore Oil w in fiv You plan to ivest in a hedse fund that has toital capital of $200 million invested iu Investment in millions) Stock's Beta 0.7 1.4 2.5 2.6 2.8 Stock 20 The r sk free rate is 4%, and you believe that the following probability distribution for market returns is realistic Historica Expected on Rats Market Return 5% 9% 12% 16% 20% Probability 0.1 0.2 0.4 0.2 0.1 The hedge fund receives a proposal from a company seeking new capital. The ao needed to take a position on the stock is $50 million. The stock has an expected retun d 15%, and its estimated beta is 12