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Joel Foster Is the Portfolio Manager of the SF Fund

question 31

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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?  Stock  Amount  Beta  A $1,075,0001.20 B 675,0000.50 C 750,0001.40 D 500,0000.75$3,000,000\begin{array} { c r r } \text { Stock } & \text { Amount } & \text { Beta } \\\text { A } & \$ 1,075,000 & 1.20 \\\text { B } & 675,000 & 0.50 \\\text { C } & 750,000 & 1.40 \\\text { D } & 500,000 & 0.75 \\& \$ 3,000,000 &\end{array}


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