Ans 10.27%
Stock | Beta | Investment | Beta * Investment |
A | 1.50 | 220000 | 330000 |
B | -0.50 | 700000 | -350000 |
C | 1.25 | 1220000 | 1525000 |
D | 0.75 | 2300000 | 1725000 |
Total | 4440000 | 3230000 | |
Average beta = | (Beta * Investment) / Total Investment | ||
3230000 / 4440000 | |||
0.727477477 | |||
Required Return = | Risk free Return + (Market Return - Risk free return)* Beta | ||
Required Return = | 3% + (13% - 3%)*0.727477 | ||
Required Return = | 10.27% | ||
Portfolio required return Suppose you are the money manager of a $4.44 million investment fund. The...
Suppose you are the money manager of a $4.34 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 220,000 1.50 B 500,000 (0.50 ) C 1,220,000 1.25 D 2,400,000 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.
PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $5.06 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 260,000 1.50 500,000 (0.50) 1,500,000 1.25 2,800,000 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. hoat Work
Portfolio required return Suppose you are the money manager of a $4.9 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 440,000 1.50 B 460,000 - 0.50 C 1,500,000 1.25 D 2,500,000 0.75 If the market's required rate of return is 12% 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.
PORTFOLIO REQUIRED RETURN 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 $ 400,000 1.50 B 480,000 (0.50) C 1,100,000 1.25 D 3,000,000 0.75 If the market's required rate of return is 8% 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. ________ %
Portfolio required return Suppose you are the money manager of a $4.18 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 340,000 1.50 B 740,000 - 0.50 C 1,300,000 1.25 D 1,800,000 0.75 If the market's required rate of return is 12% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
Portfolio required return 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 $ 460,000 1.50 B 580,000 - 0.50 C 940,000 1.25 D 3,000,000 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. (Thank you...
Portfolio required return Suppose you are the money manager of a $4.03 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 440,000 1.50 B 340,000 - 0.50 C 1,500,000 1.25 D 1,750,000 0.75 If the market's required rate of return is 8% 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. %
Problem 8-7 Portfolio required return Suppose you are the money manager of a $4.51 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 300,000 1.50 740,000 - 0.50 1,020,000 1.25 2,450,000 0.75 If the market's required rate of return is 8% 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.
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.
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. %