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Suppose you are the money manager of a $4.93 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Beta A $ 320,000 B C 620,000 1,340,000 2,650,000 D 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Investment 1.50 (0.50) 1.25

Suppose you are the money manager of a $4.93 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Beta A $ 320,000 B C 620,000 1,340,000 2,650,000 D 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Investment 1.50 (0.50) 1.25

Essentials Of Investments
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
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Suppose you are the money manager of a $4.93 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A $ 320,000 620,000 B C 1,340,000 D 2,650,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Beta 1.50 (0.50) 1.25
Transcribed Image Text:Suppose you are the money manager of a $4.93 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A $ 320,000 620,000 B C 1,340,000 D 2,650,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Beta 1.50 (0.50) 1.25
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