Consider the following information and then calculate the required rate of return for the Global 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: $$\begin{array} { l r r }
\text { Stock } & \underline { \text { Investment } } & \underline { \text { Beta } } \
\text { A } & \$ 200,000 & 1.50 \
\text { B } & 300,000 & - 0.50 \
\text { C } & 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
A) 9.58%
B) 10.09%
C) 10.62%
D) 11.18%
E) 11.77%

Question

Consider the following information and then calculate the required rate of return for the Global 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: $$\begin{array} { l r r } 
\text { Stock } & \underline { \text { Investment } } & \underline { \text { Beta } } \
\text { A }  & \$ 200,000 & 1.50 \
\text { B } & 300,000 & - 0.50 \
\text { C } & 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
A) 9.58%
B) 10.09%
C) 10.62%
D) 11.18%
E) 11.77%

Quizplus · Accepted Answer

The Answer of Consider the following information and then calculate the required rate of return for the Global 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: $$\begin{array} { l r r } 
\text { Stock } & \underline { \text { Investment } } & \underline { \text { Beta } } \
\text { A }  & \$ 200,000 & 1.50 \
\text { B } & 300,000 & - 0.50 \
\text { C } & 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
A) 9.58%
B) 10.09%
C) 10.62%
D) 11.18%
E) 11.77%

Consider the Following Information and Then Calculate the Required Rate