Question
In: Finance
Suppose you are the money manager of a $4.02 million investment fund. The fund consists of four stocks with the following investments and betas:
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.02 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 400,000 | 1.50 |
| B | 560,000 | (0.50) |
| C | 1,060,000 | 1.25 |
| D | 2,000,000 | 0.75 |
If the market's required rate of return is 9% 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.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Suppose you manage a $2 million fund that consists of four stocks with the following investments:...
Suppose you manage a $2 million fund that consists of four
stocks with the following investments:
Stock
Investment
Beta
A
$200,000
1.50
B
300,000
-0.50
C
600,000
1.25
D
900,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 3%, 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 $4.815 million fund that consists of four stocks with the following investments:...
Suppose you manage a $4.815 million fund that consists of four
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Stock Investment Beta
A $260,000 1.50
B $775,000 -0.50
C $1,180,000 1.25
D $2,600,000 0.75
If the market's required rate of return is 11% 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.
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Suppose you are the money manager of a $4.57 million investment
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Stock
Investment
Beta
A
$ 240,000
1.50
B
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C
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1.25
D
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rate is 4%, what is the fund's required rate of return? Do not
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places.
Suppose you are the money manager of a $4.37 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.37 million investment
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Stock
Investment
Beta
A
$ 200,000
1.50
B
320,000
(0.50)
C
1,300,000
1.25
D
2,550,000
0.75
If the market's required rate of return is 10% and the risk-free
rate is 3%, 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 $4.22 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.22 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 260,000
1.50
B
300,000
(0.50
)
C
1,260,000
1.25
D
2,400,000
0.75
If the market's required rate of return is 8% 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 $4.86 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.86 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 480,000
1.50
B
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(0.50
)
C
980,000
1.25
D
2,600,000
0.75
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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...
Suppose you are the money manager of a $4.37 million investment
fund. The fund consists of four stocks with the following
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Stock
Investment
Beta
A
$ 460,000
1.50
B
680,000
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C
1,380,000
1.25
D
1,850,000
0.75
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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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Stock
Investment
Beta
A
$ 420,000
1.50
B
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C
1,460,000
1.25
D
1,900,000
0.75
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round intermediate calculations. Round your answer to two decimal
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Suppose you are the money manager of a $4.66 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.66 million investment
fund. The fund consists of four stocks with the following
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520,000 (0.50) C 900,000 1.25 D 3,000,000 0.75 If the market's
required rate of return is 12% and the risk-free rate is 3%, what
is the fund's required rate of return? Do not round intermediate
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Suppose you are the money manager of a $4.38 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.38 million investment
fund. The fund consists of four stocks with the following
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Stock
Investment
Beta
A
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1.50
B
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C
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1.25
D
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If the market's required rate of return is 12% 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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