Risk-free rate, Financial Management

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Assume you manage a $4.42 million fund that having of four stocks with the following investments:

Stock

Investment

Beta

A

$340,000

 

1.50

B

800,000

 

-0.50

C

1,380,000

 

1.25

D

1,900,000

 

0.75

If the market's needed rate of return is 11% and the risk-free rate is 3%, what is the fund's needs rate of return?


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