ANSWER EACH PART PLEASE! Suppose you are the money manager of a $5.04 million investment fund. The fund consists of four stocks with the following investments and betas:StockInvestmentBetaA$ 420,0001.50В680,000(0.50)CA 1,140,0001.25D2,800,0000.75If 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 twodecimal places.%

First we need to find beta of the portfolio Then expected return is equal to risk free rate plus…

Suppose you are the money manager of a $5.04 million investment fund. The fund consists of four stocks with the following investments änd Bêtas! Stock Investment Beta $ 420,000 1.50 A 680,000 (0.50) * 1,140,000 1.25 2,800,000 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. %

Suppose you are the money manager of a $5.04 million investment fund. The fund consists of four stocks with the following investments änd Bêtas! Stock Investment Beta $ 420,000 1.50 A 680,000 (0.50) * 1,140,000 1.25 2,800,000 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. %

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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