Question
Consider the following information and calculate the required rate of return for the Pacific Investment Fund.The total investment in the fund is $1.5 million. Stock
Consider the following information and calculate the required rate of return for the Pacific Investment Fund.The total investment in the fund is $1.5 million.
StockInvestmentBeta
A$ 350,0002.6
B400,000-1.5
C400,0001.30
D350,0000.90
The market-required rate of return is 17 percent and the risk-free rate is 6 percent.
What is the beta of portfolio as well as the return of the portfolio?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
