Question
Suppose you are the money manager of a $5.34 million investment fund. The fund consists of four stocks with the following investments and betas: Stock
Suppose you are the money manager of a $5.34 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 440,000 | 1.50 |
| B | 520,000 | - 0.50 |
| C | 1,380,000 | 1.25 |
| D | 3,000,000 | 0.75 |
If the market's required rate of return is 13% 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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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
