Compute what is the portfolio required return

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Assume that you are the portfolio manager of the Forestie 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%. Compute what is the portfolio's required return should investors expect on this fund? (Please state your answer in 2 decimal points)

Stock A B C D

Amount $1,075,000 $675,000 $750,000 $500,000

Beta 1.20 0.50 1.40 0.75

Reference no: EM132584858

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