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Question 1 Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million. Stock A, Investment $200,000
Question 1
Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.
Stock A, Investment $200,000 Beta, 1.5, Expected Return 22%. Stock B, Investment $300,000, Beta -0.5, Expected Return 3%. Stock C, Investment $500,000, Beta 1.25, Expected Return 13%.
Based on the allocation of dollars among the three stocks and their expected return, calculate the expected rate of return for the BU Scholarship Investment Fund. Answer in percent (%), to 2 decimals, such as 15.12%
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