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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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