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3. Suppose you manage a $4 million fund that consists of four stocks with the following investments: Stock A Investment $400,000 B 600,000 C
3. Suppose you manage a $4 million fund that consists of four stocks with the following investments: Stock A Investment $400,000 B 600,000 C 1,000,000 D 2,000,000 Beta 1.50 -0.50 1.25 0.75 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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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
