Question
The Apple Bee Investment Fund has a total investment of $600 million in five stocks. Stock Investment (Millions) Beta A 230 1.4 B 210 1.5
The Apple Bee Investment Fund has a total investment of $600 million in five stocks.
| Stock | Investment (Millions) | Beta |
| A | 230 | 1.4 |
| B | 210 | 1.5 |
| C | 70 | 1.0 |
| D | 90 | 2.0 |
What is the funds overall, weighted average, beta?
If the risk-free rate is 5% and the market return is 11%, what is the required rate of return on the Apple Fund?
Let assume IBMs beta is the same as what you calculated in a. Several analysts predict that IBMs expected return for next year will be 15%, is IBM over or undervalued?
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Fundamentals Of Health Care Financial Management
Authors: Steven Berger
4th Edition
1118801687, 978-1118801680
