Suppose you are the money manager of a $4.86million investment fund. The fund consists of fourstocks with the following investments and betas:StockInvestmentBetaA$ 280,0001.50В700,000(0.50)1,380,0001.252,500,0000.75If the market's required rate of return is 11% andthe risk-free rate is 6%, what is the fund's requiredrate of return? Do not round intermediatecalculations. Round your answer to two decimalplaces.22.65%

Market return = 11% Risk free rate = 6%

Answered: Suppose you are the money manager of a…

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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