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Suppose you are the money manager of an investment fund. The fund consists of four stocks with the following investments and betas: table [
Suppose you are the money manager of an investment fund. The fund consists of four stocks with the following investments and betas:
tableStockInvestment,BetaA$B$C$D$
If the market's required rate of return is and the riskfree rate is what is the required rate of return of the portfolio?
Question
pts
Given the following information, determine the beta coefficient for Stock that is consistent with equilibrium: risk free rate rate or return for market State your answer to decimal places.
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Beale Manufacturing Company has a beta of and Foley Industries has a beta of the required return on an index fund that holds the entire stock market is and the riskfree rate of return is By how much does the required return on Beal's stock exceed the required return on the Foley's stock? State your answer to decimal places.
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