What is the fund required rate of return

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Reference no: EM132014648

Prepare the following problems in Excel and ensure the formulas are present in the appropriate cells

Suppose you manage a $4 million fund that consists of four stocks with the following investments:

Stock                           Investment                   Beta

A                                 $400,000                     1.3

B                                 600,000                       -0.40

C                                 1,000,000                    1.25

D                                 2,000,000                    0.75

If the market’s required rate of return is 14% and the risk-free rate is 6%, what is the fund’s required rate of return?

Reference no: EM132014648

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