Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with the following investments: Stock Investment Beta A $900,000 1.50 B 1,500,000 -0.50 C 2,100,000 1.25 D 1,500,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 7%, 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 $6 million fund that consists of four stocks with the following investments: Stock Investment Beta A $900,000 1.50 B 1,500,000 -0.50 C 2,100,000 1.25 D 1,500,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 7%, 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 $6 million fund that consists of four stocks with the following investments:
| Stock | Investment | Beta | ||
| A | $900,000 | 1.50 | ||
| B | 1,500,000 | -0.50 | ||
| C | 2,100,000 | 1.25 | ||
| D | 1,500,000 | 0.75 |
If the market's required
%
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