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I am looking for a step by step solution on how to get the answer that is presented in the bottom right corner Assume that
I am looking for a step by step solution on how to get the answer that is presented in the bottom right corner
Assume that you are the portfolio manager of the Get Rich Quick Fund, a $3.3 million hedge fund that contains the following stocks. The required rate of return on the market is 12.00% and the risk-free rate is 3.00%. What rate of return should investors expect (and require) on this fund? Do not round your intermediate calculations. Stock Amount Beta A $525,000 1.30 B $675,000 0.50 $1,300,000 1.50 D $800,000 0.75 Answer 12.74%Step by Step Solution
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