Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.  The market's required rate of return is 10.25%, the risk-free rate is 6.45%, and the Fund's assets are as follows:Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.StockInvestmentBetaA   $215,0001.25B$375,0000.75C    $575,000–0.45D$1,055,0002.18

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Asked Mar 30, 2019
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Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio.  The market's required rate of return is 10.25%, the risk-free rate is 6.45%, and the Fund's assets are as follows:

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

Stock
Investment
Beta
A
   $215,000
1.25
B
$375,000
0.75
C
    $575,000
–0.45
D
$1,055,000
2.18
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Expert Answer

Step 1

Beta of the portfolio, Bp = Sum of investment proportion weighted beta of the individual security.

Please see the whiteboard for the subsequent steps. Please note the following:

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