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Suppose you are the money manager of a $4.36 million investment fund. The fund consists of four stocks with the following investments and betas: 1.50

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Suppose you are the money manager of a $4.36 million investment fund. The fund consists of four stocks with the following investments and betas: 1.50 B Stock Investment Beta A $ 380,000 600,000 (0.50) 1,280,000 1.25 D 2,100,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % $ An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 9.2%. Bond C pays a 11.5% annual coupon, while Bond Z is a zero coupon bond. a. Assuming that the yield to maturity of each bond remains at 9.2% over the next 4 years, calculate the price of the bonds at each of the following years to maturity. Round your answers to the nearest cent. Years to Maturity Price of Bond C Price of Bond z 4 $ $ 3 $ $ $ 0 $ b. Select the correct graph based on the time path of prices for each bond. A Bond Price! $1.200 Bond C $ $ 2 1 A $ $ $1.000 $800 $600 Bond Z $400 $200 3 1 Years to Maturity B Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 4 1 Years to Maturity C Bond Price $1.200 Bond Z $1.000 $800 $600 Bond C $400 $200 1 6 Years to Maturity D Bond Price! $1200 $1.000 Bond C $800 $600 Bond Z $400 $200 4 1 Years to Maturity The correct sketch is -Select

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