Question: Problem 6-10 Portfolio Required Return Suppose you manage a $5.255 million fund that consists of four stocks with the following investments: Stock Investment Beta A
Problem 6-10
Portfolio Required Return
Suppose you manage a $5.255 million fund that consists of four stocks with the following investments: Stock Investment Beta A $480,000 1.50 B 475,000 -0.50 C 1,500,000 1.25 D 2,800,000 0.75 If the market's required rate of return is 11% 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. %
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