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John is the manager of a $ 5 0 million investment fund. The fund consists of five stocks with the following investments and betas: Stock
John is the manager of a $ million investment fund. The fund consists of five stocks with the following investments and betas:
Stock Investment in million $ Beta
A $
B $
C $
D $
E $
If the riskfree rate is and the markets required rate of return is what is the investment funds required rate of return? Hint: find the portfolio beta first and then apply the CAPM formula
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