3. Problem 8.07 (Portfolio Required Return)BAeBookProblem Walk-ThroughSuppose you are the money manager of a $5.02 million investment fund. The fund consists of four stocks with the following investments and betas:Investment$ 260,000600,0001,560,0002,600,000сDIf 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.%StockABBeta1.50(0.50)1.250.75

according to Capital asset pricing model ,k= Rf+[b*(Rm-Rf)]wherek= required rate of returnRf= risk…

3 eBook H Problem Walk-Through opose 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 A B $ 260,000 600,000 1,560,000 2,600,000 с D he 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. Beta 1.50 (0.50) 1.25 0.75

3 eBook H Problem Walk-Through opose 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 A B $ 260,000 600,000 1,560,000 2,600,000 с D he 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. Beta 1.50 (0.50) 1.25 0.75

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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