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Consider the Following Information and Then Calculate the Required Rate

Question 58

Multiple Choice

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 17.50%,the risk-free rate is 3.00%,and the Fund's assets are as follows (Do not round your intermediate calculations. ) :  Stock  Investment  Beta A$200,0001.50 B300,0000.50C500,0001.25D$1,000,0000.75\begin{array}{rrr}\text { Stock }&\text { Investment }&\text { Beta }\\A & \$ 200,000 & 1.50 \\\mathrm{~B} & 300,000 & -0.50 \\\mathrm{C} & 500,000 & 1.25 \\\mathrm{D} & \$ 1,000,000 & 0.75\end{array}
?


A) 14.06%
B) 15.46%
C) 14.76%
D) 15.18%
E) 13.35%

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