(c) MGMT2023 Investment Fund has total capital of $1,000 million invested in five stocks (cf Table...

 

 

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(c) MGMT2023 Investment Fund has total capital of $1,000 million invested in five stocks (cf Table 1). The market returns have the probability distribution shown in Table 2. Given a risk-free rate of 8%, compute the fund's required rate of return. (7 marks) Table 1 Table 2 STOCK'S MARKET STOCK INVESTMENT BETA PROB. RETURN COEFFICIENT NXXXX Z Y $340 million 0.5 $250 million 2 $130 million W $130 million $150 million 413 0.2 0.1 72323 0.1 10% 0.2 12% 0.4 13% 9% 8% (c) MGMT2023 Investment Fund has total capital of $1,000 million invested in five stocks (cf Table 1). The market returns have the probability distribution shown in Table 2. Given a risk-free rate of 8%, compute the fund's required rate of return. (7 marks) Table 1 Table 2 STOCK'S MARKET STOCK INVESTMENT BETA PROB. RETURN COEFFICIENT NXXXX Z Y $340 million 0.5 $250 million 2 $130 million W $130 million $150 million 413 0.2 0.1 72323 0.1 10% 0.2 12% 0.4 13% 9% 8%