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Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2
Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million. The market required rate of return is 15 percent, and the risk-free rate is 7 percent. Please include breakdown.
Stock | Investment | Beta |
A | $ 200,000 | 1.50 |
B | 300,000 | 0.50 |
C | 500,000 | 1.25 |
D | 1,000,000 | 0.75 |
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