Suppose you are the money manager of the following portfolio. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 460,000 1.50 B 500,000 (0.50) 1,260,000 1.25 2,600,000 0.75 What is the portfolio's Beta Coefficient? (4 decimal places) Beta Coefficient = If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? (2 decimal places) Required Rate of Return =
Suppose you are the money manager of the following portfolio. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 460,000 1.50 B 500,000 (0.50) 1,260,000 1.25 2,600,000 0.75 What is the portfolio's Beta Coefficient? (4 decimal places) Beta Coefficient = If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? (2 decimal places) Required Rate of Return =
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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![Suppose you are the money manager of the following portfolio. The fund consists of four
stocks with the following investments and betas:
Stock
Investment
Beta
A
$ 460,000
1.50
500,000
(0.50)
C
1,260,000
1.25
2,600,000
0.75
What is the portfolio's Beta Coefficient? (4 decimal places)
Beta Coefficient
If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's
required rate of return? (2 decimal places)
Required Rate of Return =](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0612e210-5e44-4b86-9116-976604f2cca4%2Fc48bf11c-fee6-452f-bc23-61ad20b9315f%2F4qp7eu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose you are the money manager of the following portfolio. The fund consists of four
stocks with the following investments and betas:
Stock
Investment
Beta
A
$ 460,000
1.50
500,000
(0.50)
C
1,260,000
1.25
2,600,000
0.75
What is the portfolio's Beta Coefficient? (4 decimal places)
Beta Coefficient
If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's
required rate of return? (2 decimal places)
Required Rate of Return =
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