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Suppose you manage the $4 million fund that consists of four stocks with the following investments:

Stock Investment Beta

A $400,000 1.5

B 600,000 -0.5

C 1,000,000 1.25

D 2,000,000 0.75

Total $4,000,000

If the market's required rate of return is 14% and the risk-free rate is 6%, what is the bond's required rate return?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942997

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