Question
Suppose you manage a $5 million fund that consists of four stocks with the following investments: Stock Investment Beta A $500,000 1.50 B $1,250,000 -0.50
Suppose you manage a $5 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta |
| A | $500,000 | 1.50 |
| B | $1,250,000 | -0.50 |
| C | $1,750,000 | 1.25 |
| D | $1,500,00 | 0.75 |
If the market's required rate of return is 10% 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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Cryptocurrency QuickStart Guide
Authors: Jonathan Reichental
1st Edition
1636100406, 978-1636100401
