Portfolio Required Return Suppose you manage a $4.71 million fund that consists of four stocks with the following investments: Stock Investment Beta A $260,000 1.50 B 450,000 -0.50 C 1,300,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 12% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. ______%
Portfolio Required Return Suppose you manage a $4.71 million fund that consists of four stocks with the following investments: Stock Investment Beta A $260,000 1.50 B 450,000 -0.50 C 1,300,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 12% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. ______%
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 10P
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Portfolio Required Return
Suppose you manage a $4.71 million fund that consists of four stocks with the following investments:
Stock | Investment | Beta | |
A | $260,000 | 1.50 | |
B | 450,000 | -0.50 | |
C | 1,300,000 | 1.25 | |
D | 2,700,000 | 0.75 |
If the market's required
______%
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