Calculate the expected rate of return for the bu scholarship

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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 23%.

Stock B, Investment $300,000, Beta -0.5, Expected Return 3%.

Stock C, Investment $500,000, Beta 1.25, Expected Return 13%.

Question 1: 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. Answer in percent (%), to 2 decimals, such as 15.12%

Reference no: EM132479292

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