Suppose you are the money manager of an Rs.8 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock Investment Beta A Rs.800,000 1.2 B 1200,000 (0..3) C 2,000,000 1.0 D 4,000,000 0.6 If the market required rate of return is 13.5 percent and the risk-free rate is 5.5 percent, what is the fund's required rate of return?

Suppose you are the money manager of an Rs.8 million investment fund. The fund consists of 4 stocks with the following investments and betas: Stock Investment Beta A Rs.800,000 1.2 B 1200,000 (0..3) C 2,000,000 1.0 D 4,000,000 0.6 If the market required rate of return is 13.5 percent and the risk-free rate is 5.5 percent, what is the fund's required rate of return?

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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