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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.

%

image text in transcribed 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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