Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.
STOCK INVESTMENT BETA EXPECTED RETURN
A $200,000 1.5 25%
B $300,000 0.5 4%
C $500,000 1.25 15%
Based on the allocation of dollars among the three stocks and their expected return, calculate the expected rate of return for the BU Scholarship Investment Fund.
a. 14.67%
b. 18.8
c. 13.7
d. 44.0
e, Insufficient information to compute