If the markets required rate of return is 10 and the


Suppose you are the money manager of a $4.82 million investment fund. The fund consists of 4 stocks with the following investments and betas:

Stock Investment Beta

A $   340,000                                 1.50

B 380,000                                 - 0.50

C 1,300,000                                 1.25

D 2,800,000                                 0.75

If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? 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:- TGS02795696

Expected delivery within 24 Hours