Attempts: Keep the Highest: / 1 6. Problem 8.07 (Portfolio Required Return) eBook Problem Walk-Through Suppose...

Attempts:

Keep the Highest:

/ 1

6. Problem 8.07 (Portfolio Required Return)

eBook Problem Walk-Through

Suppose you are the money manager of a $4.97 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment	Beta
A	$ 320,000	1.50
B	620,000	(0.50)
C	1,180,000	1.25
D	2,850,000	0.75

If the market's required rate of return is 10% 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.

_____ %

Expert Solution

Calculations-

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jeff jeffy answered 2 years ago

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