Question
ORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $3.76 million investment fund. The fund consists of four stocks with the following investments
ORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $3.76 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 500,000 | 1.50 |
| B | 520,000 | (0.50) |
| C | 940,000 | 1.25 |
| D | 1,800,000 | 0.75 |
If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
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Options Trading For Beginners How To Generate Predictable Income And Make A Living Without Taking Big Risks Even If You Re A Complete Beginner
Authors: Greg Middleton
1st Edition
979-8866955046
