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?

A)10.56%
B)10.83%
C)11.11%
D)11.38%
E)11.67%

Question

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?

A)10.56% 
B)10.83% 
C)11.11% 
D)11.38% 
E)11.67%

Quizplus · Accepted Answer

The Answer of 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? ​

A)10.56% 
B)10.83% 
C)11.11% 
D)11.38% 
E)11.67%

Assume That You Are the Portfolio Manager of the SF