Suppose you are the money manager of a $4.54 million investment fund. The fund consists of...

 

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Suppose you are the money manager of a $4.54 million investment fund. The fund consists of four stocks with the following investments and betas: Stock A B C D Investment Beta $ 220,000 1.50 400,000 (0.50) 1,420,000 1.25 2,500,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Suppose you are the money manager of a $4.54 million investment fund. The fund consists of four stocks with the following investments and betas: Stock A B C D Investment Beta $ 220,000 1.50 400,000 (0.50) 1,420,000 1.25 2,500,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, 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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Heres how to calculate the funds required rate of return Calculate the weighted ave... View the full answer