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Consider the following information and then calculate the required rate of return for the Scientific Investment Fund. The funds assets are as follows: Stock Investment.
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund. The funds 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. 0.75
The market required rate of return is 15 percent and the risk-free is 7 percent. (Hint: Think about hoe to find portfolio beta)
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