Consider the following information for the bu scholarship


Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.

STOCK        INVESTMENT   BETA   EXPECTED RETURN

A                  $200,000           1.5                                     25%

B                  $300,000           0.5                                     4%

C                  $500,000           1.25                                   15%

Based on the allocation of dollars among the three stocks and their expected return, calculate the expected rate of return for the BU Scholarship Investment Fund.

a. 14.67%

b. 18.8

c. 13.7

d. 44.0

e, Insufficient information to compute

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Business Management: Consider the following information for the bu scholarship
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