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