What is fund required rate of return

Assignment Help Financial Management

Reference no: EM132045089

PORTFOLIO REQUIRED RETURN

Suppose you are the money manager of a $4.42 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock Investment Beta

A $ 460,000 1.50

B 560,000 (0.50)

C 900,000 1.25

D 2,500,000 0.75

If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places

Reference no: EM132045089

Questions Cloud

Distribution of the duration of human pregnancies : Assume that the distribution of the duration of human pregnancies has a normal distribution with a mean of 266 days and a standard deviation of 16 days.

Calculate your net present worth of purchasing the stock : Calculate your net present worth of purchasing the stock and selling the stock. What is the probability your net present worth is less than 0?

Develop a proposal relating to an area of research : Develop a proposal relating to an area of research around Project Management Graduates in the Australian Market - You can use the supplied Research Topic

Distribution of the duration of pregnancies : Assume that the distribution of the duration of pregnancies has a normal distribution with a mean of 266 days and a standard deviation of 16 days

What is fund required rate of return : If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return?

How many widgets must sell annually in order to break even : Assume that TexCo is a widget manufacturer. It costs TexCo $62 (parts and labor) to manufacture each unit, and it incurs fixed overhead of $2.5 million per year

Calculate the approximate expected internal rate of return : Calculate the approximate expected internal rate of return given the following series of expected cash flows (CF).

Identify the critical business functions : Identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment.

Calculate that the stock is currently worth : if Jennifer believes that appropriate discount rate for FHG, Inc. stock is 12%, then she will calculate that the stock is currently worth $______.

User Account

All Pages