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Question
Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million. The market required rate of return is 15 percent, and the risk-free rate is 7 percent.
Stock Investment Beta
A $ 200,000 1.50
B 300,000 u22120.50
C 500,000 1.25
D 1,000,000 0.75
a. 14.3%
b. 15.0%
c. 13.1%
d. 12.7%
e. 10.3%
Answer
This answer is hidden. It contains 195 characters.
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