Question
11.Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.The market's
11.Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.The market's required rate of return is 16.50%, the risk-free rate is 7.25%, and the Fund's assets are as follows:
Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
StockInvestmentBeta
A
Investment$225,000
Beta1.55
B
Investment $375,000
Beta 0.75
C
Investment$565,000
Beta-0.45
D
Investment$1,145,000
Beta 2.08
12.You were analyzing a stock and came up with the following probability distribution of the stock returns.What is the coefficient of variation on the company's stock?
Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
State of the EconomyProbability of State OccuringStocks expected Return
Boom20.00%21.00%
Normal46.00%14.60%
Recession34.00%8.45%
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