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  3. 6. alex is the portfolio manager of the valpo fund

6. Alex is the portfolio manager of the Valpo Fund, a $100 million hedge fund...

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6. Alex is the portfolio manager of the Valpo Fund, a $100 million hedge fund that contains the following three stocks. The market return is 10% and the free rate is 2%. What rate of return should investors expect on this fund according to CAPM? ABC Stock A B C Amount $20 million $30 million $50 million Beta 1.2 1.6 0.8 (a) 8.42% (b) 10.96% (c) 13.20% (d) 15.14% (e)17.28%

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