Suppose you are the money manager of a $4 million investment fund. The fund consists of 4 stocks with the following investments and betas: STOCK A B с D INVESTMENT $ 400,000 600,000 1,000,000 2,000,000 BETA 1.50 (0.50) 1.25 0.75 If the market's required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund's required rate of return?
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- 8.7 Suppose you are the money manager of a $5.09 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 480,000 1.50 B 760,000 (0.50) C 1,300,000 1.25 D 2,550,000 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. %A-Z 11. Problem 8.07 (Portfolio Required Return) O Ofice еВook Problem Walk-Through 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: Stock Investment Beta A $ 200,000 1.50 B 300,000 (0.50) 1,340,000 1.25 D 2,600,000 0.75 If the market's required rate of return is 11% 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. %5. Problem 8.07 (Portfolio Required Return) Suppose you are the money manager of a $4.48 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A S 340,000 1.50 B 700,000 (0.50) C 940,000 1.25 D 2,500,000 0.75 If the market's required rate of return is 11% and the risk - free rate is 5%, what is the fund's what required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
- Please show working Please answer ALL OF QUESTIONS 1 AND 2 1. Suppose you are the money manager of a $4.95 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 280,000 1.50 B 460,000 (0.50) C 1,260,000 1.25 D 2,950,000 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. 2. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect (and require) on this fund? A. 11.25% B. 10.57% C. 10.80% D. 10.69% E.10.35%Finance Suppose you are the money manager of a $4.94 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A В Beta 1.50 S 440,000 700,000 1,300,000 2,500,000 (0.50) 1.25 0.75 If the market's required rate of return is 13% 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. %
- 4. Problem 8.07 (Portfolio Required Return) еВook Problem Walk-Through Suppose you are the money manager of a $4.04 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 220,000 1.50 B 800,000 (0.50) 1,020,000 1.25 D 2,000,000 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. %еВook Problem Walk-Through Suppose you are the money manager of a $3.84 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 320,000 1.50 B 700,000 (0.50) 1,120,000 1.25 D 1,700,000 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. %4. Suppose you are a money manager of a $10 million investment fund. The fund is invested in three assets with the following investments and betas: Investment Beta 1.80 0.75 1.20 The remainder is invested in T-bills (risk free asset) with 3% return. a. If the market expected rate of return is 9% what is the fund's expected rate of return? b. Using Funds A and B, create a portfolio (report the portfolio weights and $ investment out of $10 million) with a 0.92 beta. Stock A B C $3,000,000 2,000,000 4,000,000
- Suppose you are the money manager of a $4.86 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 280,000 1.50 В 700,000 (0.50) 1,380,000 1.25 2,500,000 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. 22.65 %Suppose you manage a $3 million fund that consists of four stocks with the following investments: Stock Investment Beta A $150,000 1.50 B 450,000 -0.50 C 600,000 1.25 D 1,800,000 0.75 If the market's required rate of return is 8% 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.Suppose you manage a $4 million fund that consists of four stocks with the following investments: Beta Stock A 1.50 B -0.50 1.25 C D 0.75 If the market's required rate of return is 14% 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. Investment $400,000 1,000,000 1,600,000 1,000,000 %