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What rate of return should investors expect

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Problem 1: Assume that you are the portfolio manager of the SF Fund, a RM3 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            RM1,075,000       1.20
B           675,000                0.50
C              750,000           1.40
D            500,000            0.75
         RM3,000,000

Reference no: EM132746287

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