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Assume that you are the portfolio manager of the Gagah Fund, a RM6 million fund that contains the following stocks. The required rate of return
Assume that you are the portfolio manager of the Gagah Fund, a RM6 million fund that contains the following stocks. The required rate of return on the market is 15.00% and the risk-free rate is 7.00%. What rate of return should investors require on this fund?
Stock | Amount | Beta |
A | RM 2,250,000 | 1.20 |
B | RM 1,350,000 | 0.50 |
C | RM 1,400,000 | 1.40 |
D | RM 1,000,000 | 0.75 |
| RM 6,000,000 |
|
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