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  3. required rate of return suppose rrf = 5%, rm = 9%,

Required Rate of Return Suppose rRF = 5%, rM = 9%, and rA = 15%. Calculate Stock A's...

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Finance

Required Rate of Return

Suppose rRF = 5%, rM = 9%, andrA = 15%.

  1. Calculate Stock A's beta. Round your answer to two decimalplaces.

  2. If Stock A's beta were 1.8, then what would be A's new requiredrate of return? Round your answer to two decimal places.
    %

Portfolio Required Return

Suppose you manage a $3.925 million fund that consists of fourstocks with the following investments:

StockInvestmentBeta
A$320,0001.50
B575,000-0.50
C980,0001.25
D2,050,0000.75

If the market's required rate of return is 9% and the risk-freerate is 6%, what is the fund's required rate of return? Do notround intermediate calculations. Round your answer to two decimalplaces.

%

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