Question
A mutual manager is managing the account of a large investor. The investor holds the following stocks: Stock Amount Invested Estimated Beta A $2,000,000 0.50
A mutual manager is managing the account of a large investor. The investor holds the following stocks:
Stock Amount Invested Estimated Beta
A $2,000,000 0.50
B 1,000,000 1.10
C 3,000,000 1.20
D 4,000,000 ???
The portfolios required rate of return is 15 percent. The risk-free rate is 3 percent and the total market return is 12 percent. What is Stock Ds estimated beta?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
