4 Suppose you are the money manager of a $4.84 million investment fund. The fund consists of four stocks with the following investments and betas:StockInvestmentBeta1.50AB$ 420,000400,0001,320,000(0.50)1.25CD2,700,0000.75If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round youranswer to two decimal places.%

Total value of investment = $4.84 million Market rate of return = rm = 11% risk free rate = rf = 4%

Suppose you are the money manager of a $4.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 420,000 1.50 B 400,000 (0.50) C 1,320,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

Suppose you are the money manager of a $4.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 420,000 1.50 B 400,000 (0.50) C 1,320,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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