Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 14.00% and the risk-free rate is 6.00%. What rate of return should investors expect (and require) on this fund?
A) 13.44%
B) 13.79%
C) 14.14%
D) 14.49%

Question

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 14.00% and the risk-free rate is 6.00%. What rate of return should investors expect (and require) on this fund? 
A) 13.44% 
B) 13.79% 
C) 14.14% 
D) 14.49%

Quizplus · Accepted Answer

The Answer of Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 14.00% and the risk-free rate is 6.00%. What rate of return should investors expect (and require) on this fund? 
A) 13.44% 
B) 13.79% 
C) 14.14% 
D) 14.49%

Assume That You Are the Portfolio Manager of the Coastal