Question: Please answer both 1) Suppose you are the money manager of a $4.72 million investment fund. The fund consists of four stocks with the following

Please answer both

1) Suppose you are the money manager of a $4.72 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta
A $ 460,000 1.50
B 300,000 (0.50 )
C 1,160,000 1.25
D 2,800,000 0.75

If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

%

2)

A stock's returns have the following distribution:

Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs
Weak 0.1 (38%)
Below average 0.1 (13)
Average 0.3 12
Above average 0.3 36
Strong 0.2 54
1.0

Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return: %

Standard deviation: %

Coefficient of variation:

Sharpe ratio:

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