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Business, 13.08.2020 22:01 angieinthehouse45

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
ii. Stock B required rate of return
iii. Stock C required rate of return
iv. Stock D required rate of return
v. What is the Fund’s required rate of return?

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