Question

Suppose you are the money manager of a $5.31 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock |
Investment |
Beta |

A | $ 480,000 | 1.50 |

B | 760,000 | (0.50) |

C | 1,220,000 | 1.25 |

D | 2,850,000 | 0.75 |

If the market's required rate of return is 9% and the risk-free
rate is 5%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

%

Answer #1

.Suppose you are the money manager of a $4.9 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 480,000
1.50
B
700,000
(0.50)
C
1,220,000
1.25
D
2,500,000
0.75
If the market's required rate of return is 9% and the risk-free
rate is 3%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

Suppose you are the money manager of a $4.41 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 360,000
1.50
B
380,000
(0.50)
C
1,220,000
1.25
D
2,450,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 5%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

Suppose you are the money manager of a $4.36 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock Investment Beta
A. 580,000. 1.50
B. 700,000. (0.50)
C. 980,000. 1.25
D 2,100,000. 0.75
if the market's required rate of return is 8% and the risk-free
rate is 5%, what is the fund's required rate of return?

Suppose you are the money manager of a $4.36 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 380,000
1.50
B
700,000
(0.50
)
C
980,000
1.25
D
2,300,000
0.75
If the market's required rate of return is 9% and the risk-free
rate is 4%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%

Suppose you are the money manager of a $4.46 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 580,000
1.50
B
400,000
(0.50
)
C
1,180,000
1.25
D
2,300,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 5%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%______

Suppose you are the money manager of a $4.06 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 280,000
1.50
B
500,000
(0.50
)
C
1,580,000
1.25
D
1,700,000
0.75
If the market's required rate of return is 8% and the risk-free
rate is 4%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%

Suppose you are the money manager of a $4.98 million investment
fund. The fund consists of four stocks with the following
investments and betas:
stock
investment
beta
a
$540,000
1.50
b
700,000
(0.50)
c
1,040,000
1.25
d
2,700,000
0.75
If the market's required rate of return is 11% and the risk-free
rate is 6%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

Suppose you are the money manager of a $5.28 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$ 440,000
1.50
B
600,000
(0.50
)
C
1,540,000
1.25
D
2,700,000
0.75
If the market's required rate of return is 9% and the risk-free
rate is 6%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.
%

Suppose you are the money manager of a $4.94 million investment
fund. The fund consists of four stocks with the following
investments and betas: Stock Investment Beta A $ 240,000 1.50 B
380,000 (0.50) C 1,420,000 1.25 D 2,900,000 0.75 If the market's
required rate of return is 12% and the risk-free rate is 4%, what
is the fund's required rate of return? Do not round intermediate
calculations. Round your answer to two decimal places.

Suppose you are the money manager of a $5.06 million investment
fund. The fund consists of four stocks with the following
investments and betas:
Stock
Investment
Beta
A
$580,000
1.50
B
$800,000
(0.50)
C
$1,280,000
1.25
D
$2,400,000
0.75
If the market's required rate of return is 9% and the risk-free
rate is 4%, what is the fund's required rate of return? Do not
round intermediate calculations. Round your answer to two decimal
places.

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