If the markets required rate of return is 9 and the

Assignment Help Finance Basics
Reference no: EM13477223

Suppose you manage a $4.515 million fund that consists of four stocks with the following investments:

Stock

Investment

Beta

A

$340,000

 

1.50

B

575,000

 

-0.50

C

1,300,000

 

1.25

D

2,300,000

 

0.75

If the market's required rate of return is 9% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.

Reference no: EM13477223

Questions Cloud

If these are the only two investments in her portfolio : an individual has 45000 invested in a stock with a beta of 0.8 and another 75000 invested in a stock with a beta of
Stock a consists of a beta of 08 and stock b has a beta of : stock a has a beta of 0.8 and stock b has a beta of 1.2. 50 of portfolio p is invested in stock a and 50 is invested in
How might the role of corporate executives differ between a : 1.how might the role of corporate executives differ between a u-form and an m-form corporation?2.explain how the boston
Create questions to determine if there are brands or : 1. develop a survey and poll 10 consumers about their brand loyalty in one product category listing all selections
If the markets required rate of return is 9 and the : suppose you manage a 4.515 million fund that consists of four stocks with the following
Choose a package for any supermarket product discuss the : 1.post the company name of your brand audit for approval.southwest airlines2.select one product and discuss the six
By how much does the required return on the riskier stock : stock r has a beta of 1.5 stock s has a beta of 0.60 the expected rate of return on an average stock is 9 and the
Scheuer enterprises consists of a beta of 110 the real : scheuer enterprises has a beta of 1.10 the real risk-free rate is 2.00 investors expect a 3.00 future inflation rate
As a supervisor you had frequently been making routine : you have just been promoted from front-line supervisor to be one of the firms senior managers. during your business

Reviews

Write a Review

Finance Basics Questions & Answers

  Total cost recovery deduction be on the properties purchased

In May 2013, Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $140,000. Preston's income is $100,000. If Preston wishes to maximize his total 2013 cost recovery deduction,

  Issues set out in the assignment

Assignment requires you to address the issues set out in the assignment. The task is to be done in group of TWO (2). The assignment has two parts, A and B. Part A requires you to set up a company and process a number of transactions using MYOB.

  What is the companys cost of equity capital

Halestorm Corporation's common stock has a beta of 1.23. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent.

  What is the yield that trevor would earn by selling

The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,048.77, what is the yield that Trevor would earn by selling the bonds today?

  Determine percentage return the individual earned

Mutual fund's net asset is $50, but the amount charges, but the amount charges an exit fee of one percent of net asset value and a load fee of 4 percent of net asset value.

  What is the portfolio expected return

If the expected T-bill rate is 1.5 percent, what is the expected risk premium on the portfolio?

  Discuss the major challenges that you believe the public

1.discuss the major challenges that you believe the public will encounter as a result of the proposed budget. justify

  Qlet the following situation on november 1 2013 incoming

q.let the following situation. on november 1 2013 incoming federal reserve chaireach son janet yellin states

  Describe theory on discounted cash flows method

Describe theory on discounted cash flows method in Capital Budgeting but assets cannot be valued soundly if we do not have well-functioning capital markets

  Calculate company pay out in dividends

Fidelity company has a target capital structure that consists of 40% debt and 60% equity. The corporation's capital budget for next year is $10 million.

  What is your effective annual interest rate on the lending

What is your effective annual interest rate on the lending arrangement if you borrow $37 million immediately and repay it in one year? (Do not round intermediate calculations.

  Genetics experiment on peas

In a heredity experiment on peas, one sample of offspring contained 410 green peas & 121 yellow peas. Based on those final outcomes, determine the probability of getting an offspring pea that is green.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd