What is the fund required rate of return

Assignment Help Finance Basics
Reference no: EM13295929

Suppose you manage a $4.61 million fund that consists of four stocks with the following investments:

Stock Investment Beta
A $300,000 1.50
B 700,000 -0.50
C 1,060,000 1.25
D 2,550,000 0.75

If the market's required rate of return is 9% and the risk-free rate is 4%, what is the fund's required rate of return? Round your answer to two decimal places.

 

Reference no: EM13295929

Questions Cloud

What is the maximum amount that a firm should consider : What is the maximum amount that a firm should consider paying for a project that will return $12,000 annually for 6 years if the opportunity cost is 12%?
A fungal infection in the nasal mucous membrane : A fungal infection in the nasal mucous membrane is called
Design an amplifier to sense the open circuit output voltage : design an amplifier to sense the opencircuit output voltage of a transducer and to provide aproportional current through a load resistor. the equivelent sourceresistance of the transducer is specified to vary in the range of 1k to 10 k.
The continuation of the training program : Conclusion and Action Steps
What is the fund required rate of return : If the market's required rate of return is 9% and the risk-free rate is 4%, what is the fund's required rate of return? Round your answer to two decimal places.
What is the importance of the northwest ordinance : What is the importance of the Northwest Ordinance?
Find the maximum distance the electron gets from the origin : When an electron passes through the origin (x = 0, y = 0, z = 0), its velocity has components ofvsubx = 0 m/s, vsuby = +5000 m/s, find the maximum distance the electron gets from the origin in its subsequentmotion
Explain the major product obtained from the reaction of br2 : what would be the major product obtained from the reaction of Br2 with 1-butene if the reaction were carried out in
Hemorrhage : A hemorrhage is: The explicit powers of Congress are known as?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the projected increase in retained earnings

If all assets, short-term liabilities, and costs vary directly with sales, answer the following questions? Hint: (Additional Financing Required = Projected assets -projected liabilities-current equity-projected increase in retained earnings)

  Levered and unlevered beta

A company currently has a capital structure consisting of 30% debt, and 70% equity. What would if be if this company raises its debt ratio to 50%? What would its cost of equity change?

  Calculate the taxable income

Joan and Harry Leahy both had income in 2006. Harry made $52500 in wages. Joan has an incorporated small business that paid her a salary of $30000.

  Computing earnings per share

Rockwell paper company had earnings after taxes of $580,000 in the year 2003 with 400,000 shares of stock outstanding. On January 1, 2004, the firm issued 35,000 new shares. Calculate earnings per share for year 2004.

  What would be the yearly earnings for a person

what would be the yearly earnings for a person with $14,300 in savings at an annual interest rate of 14.5 percent?

  Describe what is the initial investment

If the assumed tax rate is 40 percent on ordinary income and capital gains, explain what is the initial investment

  How much would it cost him to buy the annuity today

Your father is about to retire, and he wants to buy an annuity that will provide him with $85,000 of income a year for 25 years, with the first payment coming immediately. The discount rate on such annuities is 5.15%. How much would it cost him to..

  Consolidation of variable interest entities

Financial Interpretation No. 46R, "Consolidation of Variable Interest Entities," references several of the FASB Concepts Statements in motivating the need to identify and consolidate variable interest entities.

  Global finance-optimal financing-investment strategy

Employ foreign exchange and cost of capital data to determine appropriate capital sources. Please describe why and how you came to these conclusions. Also make sure to site sources.

  The market semi strong form efficient

Investors expect a corporation to announce a 10% increase in earnings, but instead the firm announces a 1% increase. If the market is semistrong-form efficient,

  Discuss the assumptions that underlie the classical

Discuss the assumptions that underlie the classical and administrative decision making models. Which model more closely aligns with your work and/or management style?

  At what price is the stock selling

Favored stock will pay a dividend this year of $3.12 per share. Its dividend yield is 8%. At what price is the stock selling?

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