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(c) MGMT2023 Investment Fund has total capital of $1,000 million invested in five stocks (of Table 1). The market returns have the probability distribution shown

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(c) MGMT2023 Investment Fund has total capital of $1,000 million invested in five stocks (of Table 1). The market returns have the probability distribution shown in Table 2. Given a risk-free rate of 8%, compute the fund's required rate of return. Table 2 PROB. MARKET RETURN NXB> Table 1 STOCK'S STOCK INVESTMENT BETA COEFFICIENT $340 million 0.5 $250 million 2 $130 million 4 $130 million 1 V $150 million 3 0.1 0.2 0.4 0.2 0.1 10% 12% 13% 9% 8%

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