What is the fund required rate of return

Reference no: EM13297301

Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investments Beta A $400,000 1.50 B 600,000 (0.50) C 1,000,000 1.25 D 2,000,000 0.75 If the market required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?

Reference no: EM13297301

Questions Cloud

How much will be in the account after the ninth deposit : Suppose you make annual deposits of $ 3,000 in an account that pays annual compound interest of 4.5 % over the investment period. How much will be in the account after the ninth deposit ?

How much was in the account immediatley : When Juan was 25, he decided to begin planning for retirement in 40 years. Beginning with his 26th birthday, he invested $5,000 annually in an account that paid annual compound interest of 6 %. How much was in the account immediatley after this 40..

How to calculate the number of moles of magnesium : Calculate the number of moles of magnesium, chlorine, and oxygen atoms in 8.30 moles of magnesium perchlorate Mg(ClO4)2

How fast are the boys and the sled moving : A physics student has designed a winter game. He has a platform 4.6 meters high with a rope tied to a tree at the same height, how fast are the boys and the sled moving after they "collide"

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

Explain the gas undergoes a reversible isothermal : The gas is heated to 520.0 K at a constant volume corresponding to the initial volume c) The gas undergoes a reversible isothermal expansion at 290.0 K until the pressure is half of its initial value

Summary of significant accounting policies : How many years are covered in each of the primary comparative financial statements and were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?

What is the rms output voltage : The coil in a 60-Hz ac generator has 125 turns, each having an area of 3.0*10^-2 m^2, What is the RMS output voltage

Explain temperature changes at constant volume : A process involving a perfect gas is carried out in which the temperature changes at constant volume. First, the process is carried out for a fixed value of ?T and the mass of the gas is doubled. Then, the process is repeated with the same initial..

User Account

All Pages