Explore BrainMass

Explore BrainMass

    Multiple Choice Question about Required Rate of Return

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Consider 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

    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%

    © BrainMass Inc. brainmass.com December 24, 2021, 9:48 pm ad1c9bdddf
    https://brainmass.com/business/beta-and-required-return-of-a-project/multiple-choice-question-about-required-rate-of-return-415063

    Solution Summary

    Solution shows how to estimate the required rate of return with calculations displayed clearly.

    $2.49

    ADVERTISEMENT