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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

Stock

Investment

Beta

A

$ 200,000

1.50

B

300,000

0.50

C

500,000

1.25

D

1,000,000

0.75

a.

13.1%

b.

14.3%

c.

15.0%

d.

12.7%

e.

10.3%

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