Portfolio required returnsuppose you are the money manager, Ask an Expert

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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 $ 340,000 1.50 B 440,000 - 0.50 C 1,340,000 1.25 D 2,600,000 0.75 If the market's required rate of return is 8% 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.

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Category:- Financial Management
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