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Can you please help me, I couldn't find them. 1) CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that
Can you please help me, I couldn't find them.
1)
CAPM AND REQUIRED RETURN Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.3% rate of inflation in the future. The real risk-free rate is 1.5%, and the market risk premium is 8%. Mudd has a beta of 2.1, and its realized rate of return has averaged 12.5% over the past 5 years. Round your answer to two decimal places. % PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.1 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 300,000 1.50 B 620,000 (0.50) C 980,000 1.25 D 2,200,000 0.75 If the market's required rate of return is 13% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %Step by Step Solution
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