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Assume that you are the portfolio manager of the Delaware Fund, a $5 million mutual fund that contains the following stocks: stock amount data a

Assume that you are the portfolio manager of the Delaware Fund, a $5 million mutual fund that contains the following stocks:

stock amount data
a $400,000 1.50
b $600,000 0.50
c $1,500,000 1.25
d $2,500,000 0.75

The expected rate of return for the Delaware Fund is 13.265 percent. The expected rate of return for the market portfolio is 14 percent. Compute the rate of return for the risk-free asset. What will be the beta of the risk-free asset?

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