If the markets required rate of return is 10 and the


PORTFOLIO REQUIRED RETURN

Suppose you are the money manager of a $4.48 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock                  Investment                   Beta

A                       $   500,000                       1.50

B                            620,000                       (0.50)

C                            1,260,000                    1.25

D                             2,100,000                  0.75

If the market's required rate of return is 10% 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.   %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the markets required rate of return is 10 and the
Reference No:- TGS02785663

Expected delivery within 24 Hours