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dmalex13 dmalex13
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Posts: 134
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9 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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9 months ago
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