Assignment:
Suppose you are the money manager of a $4 million investment fund. The fund consists of 4 stocks with the following investments and betas:
|
Stock
|
Investment
|
Beta
|
|
A
|
S 400,000
|
130
|
|
B
|
600,000
|
(030)
|
|
C
|
1,000,000
|
1.25
|
|
D
|
2,000,000
|
0.75
|
If the market required rate of return is 14 percent and the risk-free rate is 6 percent, what is the fund’s required rate of return?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.