Consider the following information and then calculate the required rate of return for the Universal Investment Fund,which holds 4 stocks.The market's required rate of return is 13.25%,the risk-free rate is 7.00%,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
0) 75
A) 9.58%
B) 10.09%
C) 10.62%
D) 11.18%
E) 11.77%
Correct Answer:
Verified
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Beta
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