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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 13.75%, 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 |
a. 11.20%
b. 13.32%
c. 9.07%
d.12.65%
e. 13.21%
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