Question
Suppose you are the money manager of a $4.44 million investment fund. The fund consists of four stocks with the following investments and betas: Stock
Suppose you are the money manager of a $4.44 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 360,000 | 1.50 |
| B | 420,000 | (0.50) |
| C | 1,060,000 | 1.25 |
| D | 2,600,000 | 0.75 |
If the market's required rate of return is 8% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
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Mergers And Acquisitions Integration Handbook
Authors: Scott C. Whitaker
1st Edition
111800437X, 978-1118004371
