Question: Please answer all and you r willing to answer only one leave it empty better Q1. PORTFOLIO REQUIRED RETURN Suppose you are the money manager
Please answer all and you r willing to answer only one leave it empty better
Q1.
PORTFOLIO REQUIRED RETURN
Suppose you are the money manager of a $4.97 million investment fund. The fund consists of four stocks with the following investments and betas:
| Stock | Investment | Beta |
| A | $ 340,000 | 1.50 |
| B | 800,000 | (0.50) |
| C | 980,000 | 1.25 |
| D | 2,850,000 | 0.75 |
If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places?
PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 1.95. The risk-free rate is 3.00%, and the market risk premium is 5.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 17%, what should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your answer to two decimal places. Enter a negative answer with a minus sign
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