What is the fund required rate of return

Assignment Help Financial Management
Reference no: EM131991438

Suppose you are the money manager of a $4.53 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 200,000 1.50 B 440,000 (0.50) C 1,340,000 1.25 D 2,550,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131991438

Questions Cloud

Teachers apprehensive about using technology : Why are some teachers apprehensive about using technology in the classroom? What are some ways to get teachers to integrate more technology in lessons?
The modified duration relationship-find the price of bond : Using the modified duration relationship, find the price of the bond if the yield goes up by 50bps.
Calculate deadweight loss in wilwaukee telephone industry : a) Calculate the magnitude of WC's producer surplus in Wilwaukee's telephone industry. b) Calculate the deadweight loss in Wilwaukee's telephone industry
Discussed types of project life cycles : MPM 521 Project Planning, Integration & Scope Management Assignment. Discussed types of project life cycles such as iterative, incremental, adaptive, and others
What is the fund required rate of return : If the market's required rate of return is 9% and the risk-free rate is 5%, what is the fund's required rate of return?
Understanding of the relation between saving investment : What are the differences between the understanding of the relation between saving investment in the Keynsian theory vs. the neoclassical theory?
What could be a possible diagnosis for friend : Spend some time prior to Seminar researching these symptoms. What could be a possible diagnosis for your friend?
What is the required rate of return on stock with beta : Assume that the risk-free rate is 4.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 1.3?
Why is the interest elasticity of investment important : Why is the interest elasticity of investment important to the Reserve bank decision regarding interest rates?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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