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Portfolio required return Suppose you are the money manager of a 5.08in nvestment fund. The fund consists of 4 stocks with the following investments and betas Stock Investment $200,000 780,000 1,500,000 2,600,000 Beta 1.50 -0.50 1.25 0.75 If the markets required rate of return is 11% and the risk-free rate is 6%, what is the funds required rate of return? Round your answer to two decimal places.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE. THANK YOU

AS NOTHING IS MENTIONED, I HAVE PROVIDED ANSWER WITH BETA ROUNDED TO 2 DECIMALS AND 4 DECIMALS.

Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. Σ AutoSum ー E ゴWrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard Alignment Number Cells AA416 AB AC AD AE AF AG AH Al 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 4 PORTFOLIO REQUIRED RETURN STOCK ALLOCATION WEIGHTS BETA WEIGHTED BETA 200000 780000 1500000 2600000 5080000 0.0394 0.1535 0.2953 0.5118 1.0000 1.5 0.0591 -0.0768 0.3691 0.3839 1.25 0.75 PORTFOLIO BETA 0.7352 FUNDS REQUIRED RETURN FUNDS REQUIRED RETURN FUNDS REQUIRED RETURN- Rf +beta(Rm-Rf) 6% + 0.7352(11%-6%) 9.68% (BETA IS TAKEN TILL 4 DECIMALS) FUNDS REQUIRED RETURN FUNDS REQUIRED RETURN 6% + 0.74(11%-6%) 9.70% IF BETA IS TAKEN TILL 2 DECIMALS) KE CAPM UTILITY, SHARPE, beta bond c M port future INDEX INTL CAP BUD SING PV, FV, ANNUITYDIR cleanYIELD bond stru WACC RES1 ex di 福 130% 11:42 19-01-2019

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