What is the fund required rate of return

Assignment Help Financial Management
Reference no: EM132816774

Problem - PORTFOLIO REQUIRED RETURN - Suppose you are the money manager of a $4.82 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock

Investment

Beta

A

$460,000

1.50

B

500,000

(0.50)

C

1,260,000

1.25

D

2,600,000

0.75

Required - If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return?

Reference no: EM132816774

Questions Cloud

Different scholarly papers involving data mining : Find two different scholarly papers involving data mining. Discuss the significance of data mining as presented by the authors.
What date was the early payment made : Allowing for interest at the rate of 8 3/4 %. If the scheduled payment was due on July 14th, 2011, on what date was the early payment made?
Which ethical and other factors are relevant to the decision : Ethical questions and issues arise at both the level of setting laws and policies and the level of deciding what to do where, those are indeterminate.
Discuss the different methods : Discuss the different methods that can be used to protect web page login passwords against the brute force and dictionary attacks.
What is the fund required rate of return : Required - If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return
Descriptive and predictive categories of data mining : What are FOUR differences between descriptive and Predictive categories of Data Mining.
Which is not disclosed on the statement of cash flows : Which is not disclosed on the statement of cash flows when prepared under the indirect method, either on the face of the statement or in a separate schedule?
How would you evaluate and manage a pediatric patient : How would you evaluate and manage a pediatric patient who has a painful swelling of the hands and feet, fatigue, or fussiness? Which diagnostic studies would.
Write the algorithm and the python code : Develop a python program Write the algorithm and the Python code to implement a solution to the following problem.

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