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PORTFOLIO REQUIRED RETURN

Suppose you are the money manager of a $4.48 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 500,000 1.50

B 620,000 (0.50)

C 1,260,000 1.25

D 2,100,000 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. %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92828847

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