Consider the following information and then calculate the required rate of return for the Global 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 Global Investment Fund, which holds 4 stocks. The market's required rate of return is 12.75%, the risk-free rate is 3.00%, and the Fund's assets are as follows (Do not round your intermediate calculations.):
| 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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Authors: Louis Gapenski PhD
3rd Edition
1567932320, 978-1567932324
