Using CAPM model to calculate the Required return
Return = Rf + (Beta*(Market reurn - Rf))
Weights = Investment in a stokc/ Total Investment
Stock | Investment | Beta | Weights | Return | Weights*Return |
A | 560,000 | 1.5 | 0.12 | 14.00% | 1.66% |
B | 700,000 | -0.5 | 0.15 | 2.00% | 0.30% |
C | 1,560,000 | 1.25 | 0.33 | 12.50% | 4.13% |
D | 1,900,000 | 0.75 | 0.40 | 9.50% | 3.82% |
Total | 4,720,000 | 1 | Fund's required return | 9.91% | |
Risk free rate | 5% | ||||
Market return | 11% |
Fund's required return | 9.91% |
Suppose you are the money manager of a $4.72 million investment fund. The fund consists of...
Suppose you are the money manager of a $4.62 million investment fund. The fund consists of four stocks with the following investments and betas: Problem Walk-Through еВook Suppose you are the money manager of a $4.62 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta 560,000 A 1.50 400,000 (0.50) В 1,560,000 C 1.25 2,100,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 3%,...
Suppose you are the money manager of a $4.02 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 460,000 1.50 B 300,000 (0.50 ) C 1,560,000 1.25 D 1,700,000 0.75 If the market's required rate of return is 8% 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.
Suppose you are the money manager of a $4.16 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 380,000 1.50 B 400,000 (0.50 ) C 1,480,000 1.25 D 1,900,000 0.75 If the market's required rate of return is 9% 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.
Suppose you are the money manager of a $4.68 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 480,000 1.50 B 560,000 (0.50) C 1,340,000 1.25 D 2,300,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 7%, 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 $4.07 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 240,000 1.50 B 560,000 (0.50) C 1,420,000 1.25 D 1,850,000 0.75 If the market's required rate of return is 12% 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 $4.88 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 240,000 1.50 B 700,000 (0.50 ) C 1,240,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 12% 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 $4.98 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 240,000 1.50 B 700,000 (0.50 ) C 1,340,000 1.25 D 2,700,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, 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 $4.64 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta А $ 420,000 1.50 600,000 (0.50 ) 1,320,000 1.25 2,300,000 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 $4.71 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 480,000 1.50 B 600,000 (0.50) C 1,380,000 1.25 D 2,250,000 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.
Suppose you are the money manager of a $4.98 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 440,000 1.50 B 600,000 (0.50 ) C 940,000 1.25 D 3,000,000 0.75 If the market's required rate of return is 12% 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.