Question
Please use excel to solve! Investment Fund has a total investment of $500 million in five stocks. Stock Investment (millions) Beta 1 $150 .6 2
Please use excel to solve!
Investment Fund has a total investment of $500 million in five stocks.
Stock Investment (millions) Beta
1 $150 .6
2 120 1.2
3 80 3.0
4 90 1.8
5 60 1.0
Total $500
What is the funds overall, or weighted average, beta?
Refer to the previous problem. If the risk-free rate is 12% and the market risk premium is 6%, what is the required return on the Fund?
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
