Question
Suppose you manage a $3 million fund that consists of four stocks with the following investments: Stock Investment Beta A $300,000 1.50 B 450,000 -0.50
Suppose you manage a $3 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | ||
| A | $300,000 | 1.50 | ||
| B | 450,000 | -0.50 | ||
| C | 900,000 | 1.25 | ||
| D | 1,350,000 | 0.75 | ||
If the market's required rate of return is 15% 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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Distressed Debt Analysis Strategies For Speculative Investors
Authors: Stephen Moyer
1st Edition
1932159185, 978-1932159189
