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Please answer all and you r willing to answer only one leave it empty better Q1. PORTFOLIO REQUIRED RETURN Suppose you are the money manager
Please answer all and you r willing to answer only one leave it empty better
Q1.
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.97 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock | Investment | Beta |
A | $ 340,000 | 1.50 |
B | 800,000 | (0.50) |
C | 980,000 | 1.25 |
D | 2,850,000 | 0.75 |
If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places?
Q2.
EXPECTED RETURN
A stock's returns have the following distribution:
Demand for the Company's Products
Probability of This Demand Occurring Rate of Return If This Demand Occurs
Weak 0.2 (28%)
Below average 0.1 (6)
Average 0.4 12
Above average 0.2 24
Strong 0.1 73
1.0
Calculate the stock's expected return. Round your answer to two decimal places.
%
Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
%
Calculate the stock's coefficient of variation. Round your answer to two decimal places.
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