Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million.The market required rate of return is 15 percent, and the risk-free rate is 7 percent.
$\begin{array}{llcc}
\text {Stock } & \text { Investment } & \text { Beta } \
\text { A } &\$ 200,000 & 1.50\
\text { B } & 300,000&-0.50\
\text { C } & 500,000 & 1.25\
\text { D } & 1,000,000 & 0.75\
\end{array}$

a. $14.3 \%$
b. $15.0 \%$
c. $13.1 \%$
d. $12.7 \%$
e. $10.3 \%$

Question

Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million.The market required rate of return is 15 percent, and the risk-free rate is 7 percent.
$\begin{array}{llcc}
  \text {Stock  } & \text {  Investment } & \text { Beta } \
\text { A } &\$ 200,000 & 1.50\ 
 \text { B } & 300,000&-0.50\
\text { C } & 500,000 & 1.25\
\text { D } & 1,000,000 & 0.75\
\end{array}$

a. $14.3 \%$
b. $15.0 \%$
c. $13.1 \%$
d. $12.7 \%$
e. $10.3 \%$

Quizplus · Accepted Answer

The Answer of Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million.The market required rate of return is 15 percent, and the risk-free rate is 7 percent.
$\begin{array}{llcc}
  \text {Stock  } & \text {  Investment } & \text { Beta } \
\text { A } &\$ 200,000 & 1.50\ 
 \text { B } & 300,000&-0.50\
\text { C } & 500,000 & 1.25\
\text { D } & 1,000,000 & 0.75\
\end{array}$

a. $14.3 \%$
b. $15.0 \%$
c. $13.1 \%$
d. $12.7 \%$
e. $10.3 \%$

Consider the Following Information, and Then Calculate the Required Rate