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Consider the following information for the Global Investment Fund, which holds 4 stocks. The market's required rate of return is 13.25%, the risk-free rate is
Consider the following information for the Global 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: Stock Investment $ 200,000 300,000 500,000 $1,000,000 Beta 1.50 -0.50 1.25 0.75 a. What is the portfolio beta? b. What is the market risk premium? c. According to CAPM, what is the required rate of return for the fund
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