Question
In: Finance
PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.72 million investment fund. The...
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.72 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 460,000 | 1.50 |
| B | 440,000 | (0.50) |
| C | 1,220,000 | 1.25 |
| D | 2,600,000 | 0.75 |
If the market's required rate of return is 13% 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.
Solutions
jeff jeffy answered 8 months agoRelated Solutions
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Do not round intermediate calculations. Round your answer to two
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A
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400,000
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C
1,260,000
1.25
D
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0.75
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Suppose you are the money manager of a $4.09 million investment
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D
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300,000
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)
C
1,260,000
1.25
D
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0.75
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round intermediate calculations. Round your answer to two decimal
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%
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Stock
Investment
Beta
A
$ 480,000
1.50
B
800,000
(0.50
)
C
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1.25
D
2,600,000
0.75
If the market's required rate of return is 13% and the risk-free
rate is 5%, 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 $4.37 million investment fund. The fund consists of...
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fund. The fund consists of four stocks with the following
investments and betas:
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Investment
Beta
A
$ 460,000
1.50
B
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If the market's required rate of return is 11% 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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