Question
IF a company manages a $160,000,000 that has of four stocks with below investments: Stock Investment Beta A $30,400,000 0.77 B $23,200,000 1.91 C $16,000,000
IF a company manages a $160,000,000 that has of four stocks with below investments:
Stock Investment Beta
A $30,400,000 0.77
B $23,200,000 1.91
C $16,000,000 1.94
D $60,000,000 -2.22
E $30,400,000 -0.51
market's required rate of return is 15.0% and risk-free rate is 5.0%, what is the fund's required rate of return?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The required rate of return RRR for the fund can be calculated using the Capital Asset Pricing Model ...
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Step: 2
Step: 3
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A Survey Of Mathematics With Applications
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
11th Edition
0135740460, 978-0135740460
