Joel Foster is the portfolio manager of the SF Fund, a $3 million hedge fund that contains...

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Finance

Joel Foster is the portfolio manager of the SF Fund, a $3million hedge fund that
contains the following stocks. The required rate of return onthe market is 11.00% and
the risk-free rate is 5.00%.
What rate of return should investors expect (andrequire) on
this fund?
*Please show work on EXCEL spreadsheet, please showEXCEL formulasplease do not answer unless you useexcel
STOCK AMOUNT BETA
A $1,075,000 1.20
B 675,000 0.50
C 750,000 1.40
D 500,000 0.75
$3,000,000

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Answer An investor should expect and require See Answer

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Joel Foster is the portfolio manager of the SF Fund, a $3million hedge fund thatcontains the following stocks. The required rate of return onthe market is 11.00% andthe risk-free rate is 5.00%.What rate of return should investors expect (andrequire) onthis fund?*****Please show work on EXCEL spreadsheet, please showEXCEL formulas****please do not answer unless you useexcelSTOCKAMOUNTBETAA$1,075,0001.20B675,0000.50C750,0001.40D500,0000.75$3,000,000

STOCK	AMOUNT	BETA
A	$1,075,000	1.20
B	675,000	0.50
C	750,000	1.40
D	500,000	0.75
	$3,000,000