Assume that you are the portfolio manager of the FM Fund, a $3 million hedge fund that contains the following stocks. T

[answerhappygod]

Assume that you are the portfolio manager of the FM Fund, a $3million hedge fund that contains the following stocks. Therequired rate of return on the market is 13.00% and the risk-freerate 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 Total $3,000,000
10.56%
10.83%
11.11%
12.38%
13.14%