Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is
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Question:
Consider the following information for the BU Scholarship Investment
Fund. The total investment in the fund is $1 million.
STOCK INVESTMENT BETA EXPECTED RETURN
A $200,000 1.5 25%
B $300,000 0.5 4%
C $500,000 1.25 15%
Based on the allocation of dollars among the three stocks and their
expected return, calculate the expected rate of return for the BU
Scholarship Investment Fund.
A 14.67%
B 18.8
C 13.7
D 44.0
E Insufficient information to compute
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