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What is the fund required rate of return

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Reference no: EM132726847

Problem - Suppose you manage a $4 million fund that consists of four stocks with the following investments:

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

Required - If the market's required rate of return is 14% and the risk-free rate is 6%, what is the fund's required rate of return?

Reference no: EM132726847

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