Question
Suppose you manage a $5.25 million fund that consists of four stocks with the following investments: Stock Investment Beta A $320,000 1.50 B 650,000 -0.50
Suppose you manage a $5.25 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | ||
| A | $320,000 | 1.50 | ||
| B | 650,000 | -0.50 | ||
| C | 1,380,000 | 1.25 | ||
| D | 2,900,000 | 0.75 | ||
If the market's required rate of return is 9% and the risk-free rate is 3%, 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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Fundamentals Of Institutional Asset Management
Authors: Frank J Fabozzi, Francesco A Fabozzi
1st Edition
9811220034, 9789811220036
