IF a company manages a $160,000,000 that has of four stocks with below investments:

Stock Investment Beta

A $30,400,000 0.77

B $23,200,000 1.91

C $16,000,000 1.94

D $60,000,000 -2.22

E $30,400,000 -0.51

market's required rate of return is 15.0% and risk-free rate is 5.0%, what is the fund's required rate of return?

Answer rating: 100% (QA)

The required rate of return RRR for the fund can be calculated using the Capital Asset Pricing Model ... View the full answer