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Consider the following information and then calculate the required rate of return for the Universal 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 Universal Investment Fund, which holds 4 stocks. The market's required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund's assets are as follows. There is an investment of $200 in Stock A which has a beta of 1.5. There is an investment of $300 in Stock B which has a beta of -.5. There is an investment of $500 in Stock C which has a beta of 1.25. There is an investment of $1,000 in Stock D which has a beta of .75.
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