Compute the required rate of return


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.

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Mathematics: Compute the required rate of return
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