Question: (Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH) Suppose you are the money manager of a

(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock

Investment

Beta

A

10000.0000

0.7500

B

20000.0000

1.2500

C

15000.0000

1.3000

D

20000.0000

0.8500

If the markets required rate of return is 10%, and the risk-free rate is 3%, what is the funds required rate of return?

11.21%

9.58%

10.97%

10.75%

10.43%

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