Suppose you are the money manager of a $4.42 million investment fund. The fund consists of four stocks with the following investments and betas: Stock A B C D Beta Investment $360,000 600,000 1.50 (0.50) 1.25 1,160,000 2,300,000 0.75 If the market's required rate of return is 13% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Suppose you are the money manager of a $4.42 million investment fund. The fund consists of four stocks with the following investments and betas: Stock A B C D Beta Investment $360,000 600,000 1.50 (0.50) 1.25 1,160,000 2,300,000 0.75 If the market's required rate of return is 13% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 10P
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