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 17.75%, the risk-free rate is 5.65%, 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    $225,000 1.35 B $335,000 0.75 C     $575,000 –0.45 D $1,055,000 1.98       A.21.28% B.18.26% C.18.08% D.19.96% E.18.83%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter6: Risk And Return
Section: Chapter Questions
Problem 14P
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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 17.75%, the risk-free rate is 5.65%, 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
   $225,000
1.35
B
$335,000
0.75
C
    $575,000
–0.45
D
$1,055,000
1.98
     
A.21.28%
B.18.26%
C.18.08%
D.19.96%
E.18.83%
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