I'm confused about this one.... Portfolio Required Return Suppose you manage a $4.6 million fund that...

I'm confused about this one....

Portfolio Required Return

Suppose you manage a $4.6 million fund that consists of four stocks with the following investments:

Stock	Investment	Beta
A	$500,000	1.50
B	350,000	-0.50
C	900,000	1.25
D	2,850,000	0.75

If the market's required rate of return is 9% 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

jeff jeffy answered 2 years ago

Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with...

Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with the following investments: Stock Investment Beta A $600,000 1.50 B 1,500,000 -0.50 C 2,100,000 1.25 D 1,800,000 0.75 If the market's required rate of return is 17% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations.

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $5.15 million investment fund. The...

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $5.15 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 500,000 1.50 B 400,000 (0.50) C 1,500,000 1.25 D 2,750,000 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. %

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.78 million investment fund. The...

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.78 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 500,000 1.50 B 420,000 (0.50) C 1,460,000 1.25 D 2,400,000 0.75 If the market's required rate of return is 10% 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.

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.

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.95 million investment fund. The...

PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.95 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 480,000 1.50 B 660,000 (0.50) C 1,060,000 1.25 D 2,750,000 0.75 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. %

6. PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.9 million investment fund....

6. PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.9 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 1,260,000 1.25 D 3,000,000 0.75 If the market's required rate of return is 9% 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.

You manage a $100 million portfolio has a beta of 0.92 and an expected return of...

You manage a $100 million portfolio has a beta of 0.92 and an expected return of 9.8% per year. You intend to invest an additional $40 million in the portfolio so that the expected return increases to 10.8% per year. If the market risk premium is 5.0% per year, what does the beta of the new investment need to be?

Problem 8-7 Portfolio required return Suppose you are the money manager of a $4.09 million investment...

Problem 8-7 Portfolio required return Suppose you are the money manager of a $4.09 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock Investment Beta A $ 380,000 1.50 B 500,000 - 0.50 C 1,060,000 1.25 D 2,150,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.

Suppose that you manage a pension fund that has liabilities of $2 million, $4 million, $8...

Suppose that you manage a pension fund that has liabilities of $2 million, $4 million, $8 million, and $10 million coming due in 1, 2, 3, and 4 years, respectively. You want to invest in bonds whose cash flows will exactly match the liabilities. The following bonds are available: 1-year, 2-year, 3-year, and 4-year annual-coupon bonds selling at par; the yields (YTMs) are 1%, 2%, 3%, and 4%, respectively. What's the necessary dollar amount of investment in 1-year bond today?

You are a fund manger in RT Asset Management Fund. You manage a portfolio consist of...

You are a fund manger in RT Asset Management Fund. You manage a portfolio consist of both stocks, bonds and currencies. The following table shows information of Treasury bond market in Hong Kong (nominated in HKD) and UK (denominated in GBP). Year Zero-coupon bond yield (HKD) One-year implied forward rate (HKD) Par coupon rate (HKD) Zero-coupon bond yield (GBP) 1 6% 3% 2 6.5% 4% 3 7% 5% (a) A 3-year zero-coupon Treasury bond has a face value of $100. What...

Question