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Portfolio Required Return Suppose you manage a $5 million fund that consists of four stocks with the following investments: Stock Investment Beta A $500,000 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 | $500,000 | 1.50 | ||
B | 1,250,000 | -0.50 | ||
C | 2,000,000 | 1.25 | ||
D | 1,250,000 | 0.75 |
If the market's required rate of return is 10% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Portfolio Required Return Suppose you manage a $5 million fund that consists of four stocks with the following investments: If the market's required rate of return is 10% and the risk-free rate is 5%, 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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