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Business, 14.08.2020 14:01 matthewlucas8499

Suppose you are the money manager of a $2 million investment fund. The fund consists of four stocks with the following investments and betas. Stock Investment Beta A $ 200 000 1.50 B $ 300 000 -0.50 C $ 500 000 1.25 D $1000 000 O.75 If the market required rate of returns is 28 and the risk-free is 12%: Calculate: i. Stock A required rate of return (3 marks) ii. Stock B required rate of return (3 marks) iii. Stock C required rate of return (3 marks) iv. Stock D required rate of return (3 marks) v. What is the Fund’s required rate of return? (5 marks)

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