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:

StockInvestmentBeta
A$   400,000                                1.50
B560,000                                (0.50)
C1,060,000                                1.25
D2,000,000                                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

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related 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 stocks with the following investments: 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.
Suppose you manage a $4.485 million fund that consists of four stocks with the following investments:...
Suppose you manage a $4.485 million fund that consists of four stocks with the following investments: Stock Investment Beta A $220,000 1.50 B 775,000 -0.50 C 1,340,000 1.25 D 2,150,000 0.75 If the market's required rate of return is 13% 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.
Suppose you are the money manager of a $4.57 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.57 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $   240,000                                 1.50 B 400,000                                 (0.50) C 980,000                                 1.25 D 2,950,000                                 0.75 If the market's required rate of return is 12% 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 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 investments and betas: 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 800,000 (0.50 ) C 980,000 1.25 D 2,600,000 0.75 If the market's required rate of return is 13% and the risk-free rate is 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 investments and betas: Stock Investment Beta A $   460,000                                 1.50 B 680,000                                 (0.50) C 1,380,000                                 1.25 D 1,850,000                                 0.75 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.
Suppose you are the money manager of a $4.18 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.18 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $   420,000                                 1.50 B 400,000                                 (0.50) C 1,460,000                                 1.25 D 1,900,000                                 0.75 If the market's required rate of return is 9% 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.
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 investments and betas: Stock Investment Beta A $ 240,000 1.50 B 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 calculations. Round your answer to two decimal places.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT