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Question
Calculate the required rate of return for the Wagner Assets Management Group, 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%
Answer
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