Suppose you are the money manager of a $ 4 . 6 8 million investment fund. The

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Question:

Suppose you are the money manager of a $

4.68

million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $

540, 000 1.50

300, 000 (0.50)

1, 140, 000 1.25

2, 700, 000 0.75

If the market's required rate of return is

8 %

and the risk

-

free rate is

6 %,

what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Posted Date: May 18, 2024 04:15 PM

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Suppose you are the money manager of a $ 4 . 6 8 million investment fund. The

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