Question
Portfolio Required Return Suppose you manage a $5 million fund that consists of four stocks with the following investments: Stock Investment Beta A $250,000 1.50
Portfolio Required Return
Suppose you manage a $5 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | ||
| A | $250,000 | 1.50 | ||
| B | 500,000 | -0.50 | ||
| C | 1,000,000 | 1.25 | ||
| D | 3,250,000 | 0.75 | ||
If the market's required rate of return is 17% 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.
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
