Question
PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.08 million investment fund. The fund consists of four stocks with the following investments
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.08 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 220,000 | 1.50 |
| B | 400,000 | (0.50) |
| C | 1,460,000 | 1.25 |
| D | 2,000,000 | 0.75 |
If the market's required rate of return is 13% 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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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
