What is the fund required rate of return, Accounting Basics

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What is the fund required rate of return

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

Stock Investment Beta

A $ 400,000 1.50
B 600,000 (0.50)
C 1,000,000 1.25
D 2,000,000 0.75

If the market's required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund's required rate of return?

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Accounting Basics: What is the fund required rate of return

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Accounting Basics: What is the fund required rate of return

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Recent Questions Asked Accounting Basics

Q : Introduction to two-stock portfolio

Q : Tax consequence as a result of partnership

Q : Adjusting entry at year end on the work sheet

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Accounting Basics: What is the fund required rate of return

Reference No:- TGS092499

Recent Questions Asked Accounting Basics

Q : Introduction to two-stock portfolio

Q : Tax consequence as a result of partnership

Q : Adjusting entry at year end on the work sheet

Q : Fixed selling and administrative costs

Q : What is the fund required rate of return

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