What is the fund required rate of return

Assignment Help Finance Basics
Reference no: EM13286373

Portfolio Required Return

Suppose you manage a $5.305 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $440,000 1.50
B 575,000 -0.50
C 1,340,000 1.25
D 2,950,000 0.75

If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.

 

Reference no: EM13286373

Questions Cloud

Design a decoder that will display up-down-left-right : The display needs to tell you what direction you are about to move. The problem is WBNEC insists that you use a standard 7-Segment display. (Hint: You can tilt the display.) Design a decoder that will display up-down-left-right.
Explain synuclein is a protein that makes membranes : (alpha)-Synuclein is a protein that makes membranes, including vesicles bend. It can bend spherical vesicles into tube-like shapes called tubules. The molecular weight of (alpha)-synuclein is 15,400 g/mol.
What is its risk and which will you select : You have been approached with the idea of selling all the Italian securities, and filling out the remainder of the portfolio with Tasmanian shares, having a return of 21.7% and a deviation of 19.6%. This configuration has a .09 correlation. What i..
What is the maximum charge stored on the capacitor : A 5000-Ω resistor and a 50-μF capacitor are connected in a series at t = 0 with a 6-V battery. The capacitor is initially charged. what is the current in the circuit at t= 0, and at t= 5, and what is the maximum charge stored on the capacitor
What is the fund required rate of return : If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.
Determine how to do find vt and rt across terminals : If I put a short in across the terminals a and b, does that mean the Isc = 0 since the capacitor would eventually charge and thus become an open circuit If so, how to do you find Vt and Rt
Explain the equilibrium concentration of fencs^2 : one of the standard solution had an abnormally low absorbance reading, causing a less positive slope for the data plot. (a) will the equilibrium concentration of FeNCS^2+
How large can the capital budget be before common stock : Clanton Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn $30 million in net income next year and retain 40% of it, how large can the capital budget be before common stock must be sold.
Show that for a square matrics the linear dependence row : show that for a square matrics the linear dependence of the row vectors imples the column vectors.conversely for a non square matrics either row vectors or column vectors are linear dependent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine value of the preferred share

A company issued a preferred stock which matures in thirty years and carries a maturity value of $45. The dividend is $4 per year over the 30 year period.

  Objective type questions on bank reconciliation

Objective type questions on bank reconciliation and Combining the functions of signing checks with the approval of expenditures

  Investment portfolio in a mutual fund

Whether you have created your own investment portfolio in a mutual fund, you will naturally be quite interested in the value of the individual securities or the fund itself.

  Calculating current price of bonds

Suppose you are planning the buy of a Treasury bond in the secondary market. Bonds with five years to maturity, paying a half-yearly coupon of 12% per year,

  What is the approximate cost per month

You own 100 shares of Amazon stock (AMZN) and are concerned that the price will go down. You do not want to sell because you have unrecognized capital gains and are in a high tax bracket.

  What is the companys weighted average cost of capital

What is the company's weighted average cost of capital?

  Amortization for a patent

A corporation buy a patent for $900K with an estimated life of 15 years. It is subsequently reduced to ten years. During year 5, the product for which the patent is held is removed from market.

  What is the break-even level of earnings before interest

lester's meat market is currenly an all equity firm that has 24,000 shares of work outstanding at a market price of $25 a share. the firm has decided to leverage its operating by issuing $200,000 of debt at an interst rate of 8 percent.

  Describe the computation of npv for foreign projects

Describe the computation of NPV for foreign projects. Explain how to choose currency conversion methods (ie, spot vs forward rates) and domestic or host country interest rates in determining the proper discount rates.

  Calculate the annual cost

Deborah Tan is a listed nurse who earns $3250 per month after taxes. She has been viewing her savings strategies & current banking arrangements to estimate if she should make any changes.

  Changes without any corresponding economic changes

Explain what features of accounting, if any, would make it costly for dishonest managers to make the same changes without any corresponding economic changes

  What is mr. smith bond worth today

Investor G. Smith owns a 5-year, $1000 bond with a 5% coupon. If the yield to maturity on similar bonds is currently 10%, what is Mr. Smith bond worth today ?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd