Question #3 (5 Marks) Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investment and betas. Stock Investment Beta Encana Corporation $400,000 1.5 Dollar Tree $600,000 -0.5 Aurora Cannabis $1,000,000 1.25 Costco $2,000,000 0.75 If the market rate of return is 14%, and the risk-free rate is 6%, what is the fund's required rate of return. Question #4 (5 Marks) A. Find a company (other then the ones we discussed in class & in the handout) which has a beta of greater than 1. Briefly explain why you believe the company you have selected has the beta that it does. B. Find a company (other then the ones we discussed in class & in the handout) which has a beta of less than 1. Briefly explain why you believe the company you have selected has the beta that it does