Posted: November 28th, 2015
Question Suppose you are the money manager of a $4.72 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock Investment Beta A $ 360,000 1.50 B 480,000 - 0.50 C 1,180,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? Round your answer to two decimal places. %
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