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Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The
Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 14.25%, the risk-free rate is 6.15%, and the Fund's assets are as follows:
Stock A: $175,000 Investment and 1.65 Beta
Stock B: $335,000 Investment and 0.75 Beta
Stock C: $565,000 Investment and -0.45 Beta
Stock D: 1,115,000 Investment and 1.98 Beta
Answer is either:
a) 18.91%
b). 12.91%
c). 15.37%
d). 18.29%
e). 14.30%
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