Question: Please explain and solve the questions SECTION 16 - Assignment 16-1 Suppose tre = 9%, IM= 11%, and re = 14%. a. Calculate Stock B's

Please explain and solve the questions

SECTION 16 - Assignment 16-1 Suppose tre = 9%, IM= 11%, and re = 14%. a. Calculate Stock B's beta, Bp. b. If Stock B's beta were 1.5, what would be its new required rate of return? 16-2 Suppose you are the money manager of a $4 mill ion investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $400,000 1.5 $600,000 -0.50 $1,000,000 1.25 $2,000,000 0.75 If the market required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund's required rate of return

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