Question
Suppose you are the money manager of a $3.74 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock
Suppose you are the money manager of a $3.74 million investment fund. The fund consists of 4 stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 380,000 | 1.50 |
| B | 360,000 | - 0.50 |
| C | 900,000 | 1.25 |
| D | 2,100,000 | 0.75 |
If the market's required rate of return is 9% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.
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Dividend Policy On Share Price Volatility In Indian Stock Market
Authors: Vijay Deswal
1st Edition
3841859623, 978-3841859624
