Required rate of return on the market, Finance Basics

+44 141 628 6080
[email protected]

Required rate of return on the market

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on this fund?

Amount Beta

Stock A $1,075,000 1.20

Stock B 675,000 0.50

Stock C 750,000 1.40

Stock D 500,000 0.75

$3,000,000

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Required rate of return on the market

Reference No:- TGS050615

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What action is required

What action is required? Ignore taxes. Describe in word, no journal entry is needed.

Q : How many units did have to sell in order to turn a profit

If consumers were willing to pay $2.00 to purchase each gallon of fresh drinking water, how many units did she have to sell in order to turn a profit? Explain carefully.

Q : Payment of pounds to the british company

Assume that a U. S. company makes a purchase from a British company and agrees to pay a price of 2 million pounds. How will the U.S. company determine the cost of this purchase for the purpose of recording it in its accounting records? Briefly exp

Q : Determine the amount of income allocated to partner

The articles of partnership provide for salary allowances of $25,000 and $30,000 respectively, an allowance of interest at 12% on the capital balances at the beginning of the year, with the remaining net income divided equally. Net income for the

Q : Required rate of return on the market

Q : What happens if we change the transfer price

It assembles them in the U.S. The transfer price is $500 and the exchange rate is 2 units of M-pesos for $1. What happens if we change the transfer price to $600? Why?

Q : Dividends per share paid on common and preferred stock

Determine the total amount of dividends and the dividends per share paid on common and preferred stock for each year, assuming independent capital structures as follows:

Q : Evaluate recent national economic policies

Evaluate recent national economic policies as they relate to the magnitude of the trade deficit and 6) analyze the arguments for protectionist policies and the effect, if any, upon the trade deficit.

Q : Determining the percentage of net income

Which one of the following terms is defined as dividends paid expressed as a percentage of net income?

1925784

Questions
Asked

3,689

Active Tutors

1440126

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Required rate of return on the market

Reference No:- TGS050615

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What action is required

Q : How many units did have to sell in order to turn a profit

Q : Payment of pounds to the british company

Q : Determine the amount of income allocated to partner

Q : Required rate of return on the market

Q : What happens if we change the transfer price

Q : Dividends per share paid on common and preferred stock

Q : Evaluate recent national economic policies

Q : Determining the percentage of net income

Discuss three ethical guidelines that are important

How ensure that the youth understand what study involves

How do you define being an adult

Discussion about the nature versus nurture

Problem regarding the america youth and social media

What is a behavioral indicator related to family

Describe the results, including any scores

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Required rate of return on the market

Reference No:- TGS050615

Recent Questions Asked Finance Basics

Q : What action is required

Q : How many units did have to sell in order to turn a profit

Q : Payment of pounds to the british company

Q : Determine the amount of income allocated to partner

Q : Required rate of return on the market

Q : What happens if we change the transfer price

Q : Dividends per share paid on common and preferred stock

Q : Evaluate recent national economic policies

Q : Determining the percentage of net income

Asked Questions