Question
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium.
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium.
What is the market risk premium (rM - rRF)? Round your answer to two decimal places.
What is the beta of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.
What is the required return of Fund P? Do not round intermediate calculations. Round your answer to two decimal places.
| Stock | Expected Return | Standard Deviation | Beta | ||
| A | 8.58% | 16% | 0.8 | ||
| B | 10.78 | 16 | 1.2 | ||
| C | 12.98 | 16 | 1.5 | ||
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The School Fundraising Handbook
Authors: Lindsey Marsh
1st Edition
1785834266, 978-1785834264
