Joel Foster is the portfolio manager of the Go Anywhere Fund, a $3 million hedge...
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Joel Foster is the portfolio manager of the Go Anywhere Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 8.75% and the risk-free rate is 2.50%. What rate of return should investors expect (and require) on this fund?
| Stock | Amount | Beta |
| A | $1,075,000 | 1.20 |
| B | 675,000 | 1.50 |
| C | 750,000 | 3.35 |
| D | 500,000 | 1.10 |
|
| $3,000,000 |
|
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