Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $500,000 1.50 B 650,000 -0.50 C 1,100,000 1.25 D 2,150,000 0.75 If the market's required rate of return is 8% 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.
Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $500,000 1.50 B 650,000 -0.50 C 1,100,000 1.25 D 2,150,000 0.75 If the market's required rate of return is 8% 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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with the following investments:
If the market's required % |
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