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Question

$5.00 Required rate of return

  • From Business: Finance
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  • Due on Nov. 10, 2011
  • Asked on Nov 08, 2011 at 6:44:14PM
Asked by :
filbadi
filbadi
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Questions Asked: 10
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Q:

Consider the followingConsider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market’s required rate of return is 15.0%, the risk-free rate is 7.0%, and the Fund's assets are as follConsider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market’s required rate of return is 15.0%, the risk-free rate is 7.0%, 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. 10.67%

b. 11.23%

c. 11.82%

d. 12.45%

e. 13.10%

 

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$5.00
Answer with Calculations
  • This tutorial was purchased 2 times and rated No Rating by students like you.
  • Posted on Nov 08, 2011 at 7:20:04PM
Posted by :
QuantTutor
 
A:
Preview: ... of return for the Scientific Investment Fund, which holds 4 stocks.  The market’s required rate of return is 15.0%, the risk-free rate is 7 ...
The full tutorial is about 109 words long plus attachments.

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Attachments:
Answwer with Calculations.xlsx (9K)
 
$5.00
STOCK MARKET RELATED ISSUES : 100% CORRECT ANSWER
  • This tutorial was purchased 1 time and rated A+ by students like you.
  • Posted on Nov. 09, 2011 at 11:44:07AM
Posted by :
pavan101
pavan101
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A:
Preview: ... m.  => risk prem. = 8% ;  beta of portfo ...
The full tutorial is about 47 words long .
 
$5.00
Completed as discussed
  • This tutorial was purchased 3 times and rated A+ by students like you.
  • Posted on Nov 10, 2011 at 7:06:12PM
Posted by :
Mhlbraveheart
 
A:
Preview: ... Total investment = 200,000+300,000+500,000+1,000,000 = 2,000,000 Beta = ...
The full tutorial is about 55 words long .