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Matthias is a portfolio manager of Francisco Securities portfolio, a R3 million...
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Matthias is a portfolio manager of Francisco Securities portfolio, a R3 million hedge fund that holds the aforementioned securities:
Securities
|
Amount
|
Beta
|
F
|
R1 075 000
|
1,20
|
T
|
R675 000
|
0,50
|
G
|
R750 000
|
1,40
|
K
|
R500 000
|
0,75
|
The required rate of return on the market is 11% and the risk-free rate is 5%. What rate of return should investors expect (and require) on this fund?
0%
0%
0%
100%