Reference no: EM132623794

Problem 1: Consider the following information and then calculate the required rate of return for the Anna Rose Investment Fund, which holds 4 stocks. The market's required rate of return is 15.0%, the risk-free rate is 7.0%, and the Fund's assets are as follows:

Stock             Investment              Beta

A               $ 200,000                   1.50

B                   300,000                 -0.50

C                    500,000                 1.25

D                  1,000,000                 0.75

Option 1: 10.67%

Option 2: 11.23%

Option 3: 11.82%

Option 4: 12.45%

Option 5: 13.10%