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Assume that you are 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 2.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount Beta A $1,075,000 1.20 $675,000 0.50 $750,000 1.40 D $500,000 0.75 $3,000,000 O a. 11.16% O b. 9.93% O c. 9.37% O d. 10.82%6 O e. 9.71%

Assume that you are 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 2.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount Beta A $1,075,000 1.20 $675,000 0.50 $750,000 1.40 D $500,000 0.75 $3,000,000 O a. 11.16% O b. 9.93% O c. 9.37% O d. 10.82%6 O e. 9.71%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The requíred rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount Beta $1,075,000 1.20 $675,000 0.50 C. $750,000 1.40 $500,000 0.75 $3,000,000 O a. 11.16% O b. 9.93% O c. 9.37% O d. 10.82% O e. 9.71%
Transcribed Image Text:Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The requíred rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount Beta $1,075,000 1.20 $675,000 0.50 C. $750,000 1.40 $500,000 0.75 $3,000,000 O a. 11.16% O b. 9.93% O c. 9.37% O d. 10.82% O e. 9.71%
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