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: $$\begin{array} { c c r }
\text { Stock } & \text { Investment } & \text { B eta } \
\text { A } & \$ 200,000 & 1.50 \
\text { B } & \$ 300,000 & - 0.50 \
\text { C } & \$ 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
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 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: $$\begin{array} { c c r } 
\text { Stock } & \text { Investment } & \text { B eta } \
\text { A } & \$ 200,000 & 1.50 \
\text { B } & \$ 300,000 & - 0.50 \
\text { C } & \$ 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
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 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: $$\begin{array} { c c r } 
\text { Stock } & \text { Investment } & \text { B eta } \
\text { A } & \$ 200,000 & 1.50 \
\text { B } & \$ 300,000 & - 0.50 \
\text { C } & \$ 500,000 & 1.25 \
\text { D } & \$ 1,000,000 & 0.75
\end{array}$$
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