Assume that you are the portfolio manager of the sf fund a


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 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

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Finance Basics: Assume that you are the portfolio manager of the sf fund a
Reference No:- TGS0631657

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