Question
(10 points) Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments
(10 points) 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: Stock A B C D Investment $460,000 500,000 1,260,000 2,600,000 Beta 1.5 -0.5 1.25 0.75 If the market's required rate of return (RM) is 8%, and the risk-free rate (R) is 4%, what is the fund's required rat of return?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
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