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you are the portfolio manager of the BA Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on

you are the portfolio manager of the BA Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 10.00% and the risk-free rate is 4.50%. What rate of return should investors expect and require on this fund?

Stock A amount (1,075,000) beta (1.2)

Stock b amount (675,000) beta (.5)

Stock c amount (750,000) beta 1.40

stock d amount (500,000) beta .75

Total amount 3,000,000

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