Suppose you are the money manager of a $4 82 million investment fund The fund consists of four stocks with the following investments and betas If the markets required rate of return is 8 and the risk free rate is 4 , what is the funds required rate of return Stock Investment Beta $ 460,000 1 50 (0 ...

Portfolio beta 4600004820000150 5000004820000050 12600004820000125 26000004820000075 b ...

Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four

Question:

Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four with the following investments and betas:

Stock Investment Beta $ 460,000 1.50 (0.50) 500,000 1,260,000 1.25 2,600,000 0.75

If the market€™s required rate of return is 8% and the risk-free rate is 4%, what is the fund€™s required rate of return?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...