What is the fund required rate of return

Assignment Help Finance Basics
Reference no: EM13286373

Portfolio Required Return

Suppose you manage a $5.305 million fund that consists of four stocks with the following investments:
Stock Investment Beta
A $440,000 1.50
B 575,000 -0.50
C 1,340,000 1.25
D 2,950,000 0.75

If the market's required rate of return is 13% 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: EM13286373

Questions Cloud

Design a decoder that will display up-down-left-right : The display needs to tell you what direction you are about to move. The problem is WBNEC insists that you use a standard 7-Segment display. (Hint: You can tilt the display.) Design a decoder that will display up-down-left-right.
Explain synuclein is a protein that makes membranes : (alpha)-Synuclein is a protein that makes membranes, including vesicles bend. It can bend spherical vesicles into tube-like shapes called tubules. The molecular weight of (alpha)-synuclein is 15,400 g/mol.
What is its risk and which will you select : You have been approached with the idea of selling all the Italian securities, and filling out the remainder of the portfolio with Tasmanian shares, having a return of 21.7% and a deviation of 19.6%. This configuration has a .09 correlation. What i..
What is the maximum charge stored on the capacitor : A 5000-Ω resistor and a 50-μF capacitor are connected in a series at t = 0 with a 6-V battery. The capacitor is initially charged. what is the current in the circuit at t= 0, and at t= 5, and what is the maximum charge stored on the capacitor
What is the fund required rate of return : If the market's required rate of return is 13% and the risk-free rate is 7%, what is the fund's required rate of return? Round your answer to two decimal places.
Determine how to do find vt and rt across terminals : If I put a short in across the terminals a and b, does that mean the Isc = 0 since the capacitor would eventually charge and thus become an open circuit If so, how to do you find Vt and Rt
Explain the equilibrium concentration of fencs^2 : one of the standard solution had an abnormally low absorbance reading, causing a less positive slope for the data plot. (a) will the equilibrium concentration of FeNCS^2+
How large can the capital budget be before common stock : Clanton Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn $30 million in net income next year and retain 40% of it, how large can the capital budget be before common stock must be sold.
Show that for a square matrics the linear dependence row : show that for a square matrics the linear dependence of the row vectors imples the column vectors.conversely for a non square matrics either row vectors or column vectors are linear dependent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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