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3. Suppose you are the money manager of a $4 million investment fund. The fund consists of four stock with the following investments and
3. Suppose you are the money manager of a $4 million investment fund. The fund consists of four stock with the following investments and betas: Stock A Investment 400,000 600,000 C 1,000,000 D 2,000,000 Beta 1.50 -0.50 1.25 0.75 [6 points] If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
