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

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Suppose you are the money manager of a million dollar investment fund. The fund consists of four stocks with the following investments and betas: Beta Stock Investment Alpha $50,000 -1.50 Bingo $575,000 Charlie $250,000 0.50 Delta $125,000 2.00 -1.00 a) Calculate the fund's beta b) If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? O a)1.03; b)10.18% O a)1.25; b)11.75% a)0.28; b)4.93% a)-0.28; b)1.08% a)0.00; b)3.00%

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