Joel Foster Is the Portfolio Manager of the SF Fund,a

question 35

Multiple Choice

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
$1,075,000
1) 20
B
675,000
0) 50
C
750,000
1) 40
D
500,000
0) 75
$3,000,000

• A) 10.56%
• B) 10.83%
• C) 11.11%
• D) 11.38%
• E) 11.67%

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Definitions:

Consumers Pay

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