Suppose you manage a $4 million fund that consists of four stocks with the following investments: Beta Stock A B 1.50 -0.50 1.25 с 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

Suppose you manage a $4 million fund that consists of four stocks with the following investments: Beta Stock A B 1.50 -0.50 1.25 с 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

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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