Stock Investment Beta $ 460,0000 1.50 A в 500,000 (0.50) C 1,260,000 125 D 2,600,000 0.75

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas: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?

Stock Investment Beta
$ 460,0000 1.50
A
в
500,000
(0.50)
C
1,260,000
125
D
2,600,000
0.75
Transcribed Image Text:Stock Investment Beta $ 460,0000 1.50 A в 500,000 (0.50) C 1,260,000 125 D 2,600,000 0.75
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