Joel Foster is 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%
Correct Answer:
Verified
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