Suppose you are a money manager of a $4.82 million investment fund. The fund consists of four

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Suppose you are a money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas:

STOCK

INVESTMENT

BETA

$460,000

1.50

$500,000

(.50)

$1,260,000

1.25

$2,600,000

0.75

If the markets required rate of return is 8%, and the risk-free rate is 4%. What is the funds required rate of return?

Posted Date: Jun 06, 2024 12:07 AM

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Suppose you are a money manager of a $4.82 million investment fund. The fund consists of four

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