Problem 8-7 Portfolio required return Suppose you are the money manager of a $4.17 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 300,000 1.50 B 500,000 - 0.50 C 1,420,000 1.25 D 1,950,000 0.75 If the market's required rate of return is 10% 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 beta=Respective beta*Respective weight
=(300,000/4,170,000*1.5)+(500,000/4,170,000*-0.5)+(1,420,000/4,170,000*1.25)+(1,950,000/4,170,000*0.75)
=0.824340527
required return=risk-free rate +Beta*(market rate- risk-free rate)
=6+0.824340527*(10-6)
=9.30%(Approx).
Problem 8-7 Portfolio required return Suppose you are the money manager of a $4.17 million investment...
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 $5.06 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 $4.44 million investment fund. The fund consists of four stocks with the following investments and betas: Beta 1.50 0.50 1.25 0.75 Stock Investment $220,000 700,000 1,220,000 2,300,000 If the market's required rate of return is 13% 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
Problem 8-7 Portfolio required return Suppose you are the money manager of a $5.02 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 420,000 1.50 780,000 - 0.50 1,020,000 1.25 2,800,000 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? Do not round intermediate calculations. Round your answer to two decimal places. Check My Work...
5. Problem 8.07 (Portfolio Required Return) Suppose you are the money manager of a $5.26 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 280,000 1.50 B 600,000 (0.50 ) C 1,580,000 1.25 D 2,800,000 0.75 If the market's required rate of return is 11% 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....
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. %