Alcoa's Inc.'s Pension Fund holds 4 stocks. The market's required rate of return is 5% and risk free rate is 3%.
Stock Investment Beta
A $250,000 1.65
B $350,000 -0.75
C $750,000 1.05
D $450,000 0.75
a. Determine this fund's beta?
b. Compute the required rate of return.