Required rate of return on the market, Finance Basics

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Required rate of return on the market

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on this fund?

Amount Beta

Stock A $1,075,000 1.20

Stock B 675,000 0.50

Stock C 750,000 1.40

Stock D 500,000 0.75

$3,000,000

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Finance Basics: Required rate of return on the market

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Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What action is required

Q : How many units did have to sell in order to turn a profit

Q : Payment of pounds to the british company

Q : Determine the amount of income allocated to partner

Q : Required rate of return on the market

Q : What happens if we change the transfer price

Q : Dividends per share paid on common and preferred stock

Q : Evaluate recent national economic policies

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Required rate of return on the market

Reference No:- TGS050615

Recent Questions Asked Finance Basics

Q : What action is required

Q : How many units did have to sell in order to turn a profit

Q : Payment of pounds to the british company

Q : Determine the amount of income allocated to partner

Q : Required rate of return on the market

Q : What happens if we change the transfer price

Q : Dividends per share paid on common and preferred stock

Q : Evaluate recent national economic policies

Q : Determining the percentage of net income

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