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Assume That You Are the Portfolio Manager of the SF

question 69

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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? 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%


Definitions:

Contaminated

Subjected to the introduction of pollutants or undesirable substances, making something impure or hazardous.

Porosity

The measure of how much of a rock is open space, which could be filled by liquids or gases.

Igneous Rocks

Geological formations that originate from the solidification and cooling of molten rock materials.

Porosity

The measure of empty spaces in a material, indicating its ability to hold fluid.

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