Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 14 %, the risk-free rate is 6 %, and the Fund's assets are as follows: Stock  Investment  Beta   A $   200,000  1.50 B      300,000 -0.50 C      500,000   1.25 D   1,000,000   1.1

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
Problem 10P
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Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 14 %, the risk-free rate is 6 %, and the Fund's assets are as follows:

Stock 
Investment 
Beta  
A
$   200,000
 1.50
B
     300,000
-0.50
C
     500,000
  1.25
D
  1,000,000
  1.1
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