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Assume That You Are the Portfolio Manager of the SF

Question 69

Multiple Choice

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%


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

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