Suppose you are the money manager of a $4.82 million

Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta $ 460,000 1.50 (0.50) 500,000 1,260,000 1.25 2,600,000 0.75

If the market’s required rate of return is 8% and the risk-free rate is 4%, what is the fund’s required rate of return?

Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...


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