Consider the following information and then calculate the required rate of return for the SI Fund. The total investment in the fund is$2,000,000. The market rate of return is 15% and the risk free rateis 7%.
|
Stock
|
Investment
|
Beta
|
|
A
|
$200,000
|
1.50
|
|
B
|
$300,000
|
-0.50
|
|
C
|
$500,000
|
1.25
|
|
D
|
$1,000,000
|
0.75
|