Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 700,000 (0.50) 1,120,000 1.25 D 1,700,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 6%, 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 $3.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 700,000 (0.50) 1,120,000 1.25 D 1,700,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Problem Walk-Through
Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock
Investment
Beta
A
$ 320,000
1.50
B
700,000
(0.50)
1,120,000
1.25
D
1,700,000
0.75
If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28e2909e-59ae-4572-aed3-07960c54a16c%2F8be31967-ab26-40a8-841b-78590c57f9fd%2Fm1ye99q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:еВook
Problem Walk-Through
Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock
Investment
Beta
A
$ 320,000
1.50
B
700,000
(0.50)
1,120,000
1.25
D
1,700,000
0.75
If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
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