Suppose you are the money manager of a $5 26 million investment fund The fund consists of four stocks with the following investments and betas Stock Investment Beta A $ 580,000 1 60 B 600,000 (0 60 ) C 1,080,000 1 45 D 2,000,000 0 75 If the market 's required rate of return is 11 and the risk free ...

To calculate the funds required rate of return we can use the formula for the weighted average cost ...

Suppose you are the money manager of a $5.26 million investment fund. The fund consists of four

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Suppose you are the money manager of a $5.26 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment	Beta
A	$ 580,000	1.60
B	600,000	(0.60	)
C	1,080,000	1.45
D	2,000,000	0.75

If the market's required rate of return is 11% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

_____ %

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-1305635937

Concise 9th Edition

Authors: Eugene F. Brigham

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Posted Date: Mar 12, 2024 02:09 PM

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Suppose you are the money manager of a $5.26 million investment fund. The fund consists of four

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Fundamentals of Financial Management

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