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Problem 6 Suppose you are the money manager of a $4 million investment fund (aka portfolio). The fund (or portfolio) consists of four stocks with
Problem 6 Suppose you are the money manager of a $4 million investment fund (aka portfolio). The fund (or portfolio) consists of four stocks with the following investments and betas: Conditional Formatting Stock A B D Investment $400,000 $600,000 $1,000,000 $2,000,000 Beta 1.5 -0.5 1.25 0.75 If the market's required rate of return is 14% and the risk -free rate is 6%, what is the fund's (or portfolio) required rate of return
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