Reference no: EM132851794
Consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.
Stock A, Investment $200,000 Beta, 1.5, Expected Return 27%.
Stock B, Investment $300,000, Beta -0.5, Expected Return 2%.
Stock C, Investment $500,000, Beta 1.25, Expected Return 14%.
Based on the allocation of dollars among the three stocks and their expected return, calculate the weighted average expected rate of return for the BU Scholarship Investment Fund. Answer in percent (%), to 2 decimals, such as 15.12%