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Suppose you are a money manager of a $ 1 0 million investment fund. The fund is invested in four funds with the following investments
Suppose you are a money manager of a $ million investment fund. The fund is invested in
four funds with the following investments and betas:
Stock Investment Beta
A $
B
C
D
The remainder funds are invested in Tbills.
If the market expected rate of return is and the risk free rate Tbill return is what is
the funds expected rate of return?
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