Question
Portfolio rate of return (Show formula) Suppose you manage a portfolio that consists of the following stocks: Stock Investment Beta A 500,000 0.8 B 2,250,000
| Portfolio rate of return (Show formula) |
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| Suppose you manage a portfolio that consists of the following stocks: | ||||
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| Stock | Investment | Beta |
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| A | 500,000 | 0.8 |
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| B | 2,250,000 | 1.4 |
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| C | 1,750,000 | -0.7 |
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| D | 1,500,000 | 1.3 |
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| If the market's required rate of return is 12% and the risk-free rate is 3%, what | ||||
| is the fund's required rate of return? |
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Financial Crimes
Authors: Maximilian Edelbacher, Peter Kratcoski, Michael Theil
1st Edition
0367866528, 978-0367866525
