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28 Sep 2019
Portfolio required return
Suppose you are the money manager of a $4.77 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock Investment Beta A $ 300,000 1.50 B 320,000 - 0.50 C 1,500,000 1.25 D 2,650,000 0.75
If the market's required rate of return is 11% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Portfolio required return
Suppose you are the money manager of a $4.77 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock | Investment | Beta |
A | $ 300,000 | 1.50 |
B | 320,000 | - 0.50 |
C | 1,500,000 | 1.25 |
D | 2,650,000 | 0.75 |
If the market's required rate of return is 11% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Nelly StrackeLv2
28 Sep 2019