What rate of return should investors expect and require on


As the portfolio manager of the Trust Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 9.00% 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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Financial Management: What rate of return should investors expect and require on
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