QUESTION 45 For the next 2 questions suppose the following holds: Suppose you are the...

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QUESTION 45 For the next 2 questions suppose the following holds: Suppose you are the money manager of a $10 million investment fund. The fund consists of 2 stocks with the following investment and betas. Assume that the CAPM holds, and IRF-696, rMf12%. Stock Investment $4 million $ 6 million Beta 1.0 1.5 What is beta of the investment fund? O 1.2 O 1.3 O 1.35 O 1.4 O 1.45 What is the expected return of the fund? O 13.8% o 14.2% o 14.8% o 15.4% 0 15.79%

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