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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 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 A 338 с D Amount $1,075,000 675,000 1,100,000 500,000 3,350,000 Select the correct answer. a. 11.10 Ob 11.16% 11.34% d. 11.22% 11,28% Beta 1.20 0.50 1.40 0.75

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 A 338 с D Amount $1,075,000 675,000 1,100,000 500,000 3,350,000 Select the correct answer. a. 11.10 Ob 11.16% 11.34% d. 11.22% 11,28% Beta 1.20 0.50 1.40 0.75

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
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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 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 A B C D Amount $1,075,000 675,000 1,100,000 500,000 3,350,000 Select the correct answer. Qa. 11.10 b. 11.16% Oc11.34% d. 11 22% 11,28% Beta 1.20 0.50 1.40 0,75
Transcribed Image Text: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 A B C D Amount $1,075,000 675,000 1,100,000 500,000 3,350,000 Select the correct answer. Qa. 11.10 b. 11.16% Oc11.34% d. 11 22% 11,28% Beta 1.20 0.50 1.40 0,75
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