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eBook Problem Walk-Through
Suppose you are the money manager of a $5.42 million investment fund. The fund consists of four stocks with the following investments and betas:
Stock Investment Beta
A $ 360,000 1.50
B 700,000 (0.50 )
C 1,560,000 1.25
D 2,800,000 0.75
If the market's required rate of return is 10% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
%
Sagot :
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