The money manager of a R4 000 000 investment fund. The fund consists of four shares with
Fantastic news! We've Found the answer you've been seeking!
Question:
The money manager of a R4 000 000 investment fund. The fund consists of four shares with the following investments and betas:
Share | Investment | Beta |
Class A share | R400 000 | 1.50 |
Class B share | R600 000 | 0.50 |
Class C share | R1 000 000 | 1.25 |
Class D share | R2 000 000 | 0.75 |
If the market required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?
Related Book For
Posted Date: