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dmalex13 dmalex13
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8 months ago
Assume that you are the portfolio manager of the Coastal Fund, a $4 million hedge fund that contains the following stocks. The required rate of return on the market is 15% and the risk-free rate is 5.8%. What rate of return should investors expect (and require) on this fund?

​

​

Amount

Beta

Stock A

$1,010,000

1.30

Stock B

1,560,000

0.65

Stock C

830,000

1.70

Stock D

600,000

0.80

​

$4,000,000

​

​



▸

14.52%



▸

14.88%



▸

15.14%



▸

15.46%

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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sherry94sherry94
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8 months ago
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dmalex13 Author
wrote...

8 months ago
Brilliant ツ
ediblefruitz
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
kamikazekota
wrote...

2 hours ago
Good timing, thanks!
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