Question
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 16%, the risk-free rate is 4%, and the Fund's assets are as follows: Stock Investment Beta A $ 200,000 1.50 B 300,000 -0.50 C 500,000 1.25 D 1,000,000 1.3 Round it to two decimal places without the percent sign (%), e.g., 13.56.
Assume that the risk-free rate is 4 percent, and that the market risk premium is 5.7 percent. If a stock has a required rate of return of 12.2 percent, what is its beta? Round it to two decimal places, i.e., 1.25
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