Computation required portfolio return given discount rate

Reference no: EM1316531

Computation required portfolio return given discount rate and stock betas and invested amounts

Suppose you are the money manager of a $4 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $400,000 1.50

B 600,000 -0.50

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?

Reference no: EM1316531

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