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Assume That You Are the Portfolio Manager of the Coastal

Question 19

Multiple Choice

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 14.00% and the risk-free rate is 6.00%. What rate of return should investors expect (and require) on this fund? Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 14.00% and the risk-free rate is 6.00%. What rate of return should investors expect (and require) on this fund? A) 13.44% B) 13.79% C) 14.14% D) 14.49%


A) 13.44%
B) 13.79%
C) 14.14%
D) 14.49%

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