Suppose you manage a $2 million fund that consists of four stocks with the following investments: Stock Investment Beta A $300,000 1.50 B 500,000 -0.50 с D 700,000 1.25 500,000 0.75 If the market's required Fate of return is 9% 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. %
Suppose you manage a $2 million fund that consists of four stocks with the following investments: Stock Investment Beta A $300,000 1.50 B 500,000 -0.50 с D 700,000 1.25 500,000 0.75 If the market's required Fate of return is 9% 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. %
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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![16. Problem 6-10 (Portfolio Required Return)
eBook
目 Problem Walk-Through
Portfolio Required Return
Suppose you manage a $2 million fund that consists of four stocks with the following investments:
Stock
Investment
Beta
A
$300,000
1.50
500,000
-0.50
C
700,000
1.25
D
500,000
0.75
If the market's required Fate of return is 9% 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.
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb393258-76b9-4b52-89cc-0941c3abc8ef%2F53b0a5fa-51fb-4076-be14-4855002c4ef5%2F9ztkczg_processed.png&w=3840&q=75)
Transcribed Image Text:16. Problem 6-10 (Portfolio Required Return)
eBook
目 Problem Walk-Through
Portfolio Required Return
Suppose you manage a $2 million fund that consists of four stocks with the following investments:
Stock
Investment
Beta
A
$300,000
1.50
500,000
-0.50
C
700,000
1.25
D
500,000
0.75
If the market's required Fate of return is 9% 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.
%
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