Suppose you are the money manager of a $4.92 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 560,000 1.50 B 400,000 (0.50 ) C 1,260,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 6%, 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 $4.92 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta | ||
| A | $ 560,000 | 1.50 | ||
| B | 400,000 | (0.50 | ) | |
| C | 1,260,000 | 1.25 | ||
| D | 2,700,000 | 0.75 |
If the market's required
Suppose you are the money manager of a $4.92 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta | ||
| A | $ 560,000 | 1.50 | ||
| B | 400,000 | (0.50 | ) | |
| C | 1,260,000 | 1.25 | ||
| D | 2,700,000 | 0.75 |
If the market's required rate of return is 8% and the risk-free rate is 6%, 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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