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13. An portfolio manager gathered the following information about a fund. Fund's rate of return 20%...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 3.5%, and the market risk pr...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 3.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 17%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 3.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 17%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 5.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...
Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of...
Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 0.75. The risk-free rate is 4.00%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate...
PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00....
PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 7.50%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations....
6. (Jensen's alpha) The risk- n's alpha) The risk-free rate is 2%. You observe two fund...
6. (Jensen's alpha) The risk- n's alpha) The risk-free rate is 2%. You observe two fund managers (A and B) and the market portfolio. Use в со JENSEN'S ALPHA 2 Risk-free return 2% 3 Mutual fund 4 Mean return 5 Standard deviation 6 Correlation coefficient with the market (Pim) 7 Beta 8 "Normative return" (based on the SML) 9 Jensen's alpha A 7% 25% 0.36 Market portfolio 10% 18% B 20% 72% 0.5 a. Calculate the beta of each stock...
A mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free...
A mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free rate is 4.5%, and the market risk premium is 7%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 15%. What should be the average beta of the new stocks added to the portfolio? a) Find the weights of the new...
Portfolio required return Suppose you are the money manager of a 5.08in nvestment fund. The fund...
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 market's required rate of return is 11% and the risk-free rate is 6%, what is the fund's required rate of return? Round your answer to two decimal places.
a mutual fund manager expects her portfolio to earn a rate of return of 11 percent...
a mutual fund manager expects her portfolio to earn a rate of return of 11 percent this year. The beta of her portfolio is .8. If the rate of return available on risk-free assets is 4% and you expect the rate of return on the market portfolio to be 14%, should you invest in this mutual fund?
A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free...
A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 6.75%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 18%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your...
A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 5.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...
6. (Jensen's alpha) The risk- n's alpha) The risk-free rate is 2%. You observe two fund managers (A and B) and the market portfolio. Use в со JENSEN'S ALPHA 2 Risk-free return 2% 3 Mutual fund 4 Mean return 5 Standard deviation 6 Correlation coefficient with the market (Pim) 7 Beta 8 "Normative return" (based on the SML) 9 Jensen's alpha A 7% 25% 0.36 Market portfolio 10% 18% B 20% 72% 0.5 a. Calculate the beta of each stock...
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 market's required rate of return is 11% and the risk-free rate is 6%, what is the fund's required rate of return? Round your answer to two decimal places.
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