Finance

Consider the following information and calculate the required rate of return for the Winkler Investment Fund. The total investment fund is $2 million.

Stock Investment Beta
----- ---------- ----
A $ 200,000 1.50
B 300,000 -0.50
C 500,000 1.25
D 1,000,000 0.75

The market required rate of return is 15% and the risk-free rate is 7 percent.

  1. 👍 0
  2. 👎 0
  3. 👁 218

Respond to this Question

First Name

Your Response

Similar Questions

  1. Algebra

    A financier plans to invest up to $500,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 16% on the investment of y dollars. Because the investment in

  2. Finance

    Aset P has a beta of 0.9. The risk-free rate of return is 8%, while the return on the S&P 500 is 14%. Asset P's required rate of return is:

  3. Math

    Jennifer made an initial investment of $14,000 in a mutual fund. She invests an additional $300 each month to the mutual fund. What are the possible totals of her investment in the mutual fund? Select all that apply. $23,700

  4. Math

    The management of a private investment club has a fund of $114,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three

  1. finite!!!

    an investor is considereing three types of investment: a high-risk venture into oil leases with a potential return of 15%, a medium risk investment in bonds with a 9% return, and a relatively safe stock investment with a 5%

  2. Personal Finance

    3. Highest performing mutual fund (averaged more than 20%) this year. Mutual fund -- Type -- Return 5. Lowest performing mutual fund for the past ten years. Mutual fund; Frontier Mocrocop Tyoe -- Return -7% 6. Highest money market

  3. math,

    . Mr. David, an individual investor, has $70,000to divide among several investments. The alternative investments are municipal bonds with an 8.5% annual return, certificates of deposit with a 5% return, treasury bills with a 6.5%

  4. fnite math

    Juan invested $24,000 in a mutual fund 5 years ago. Today his investment is worth $34,616. Find the effective annual rate of return on his investment over the 5-year period.

  1. math

    Saleem has purchased an investment certificate having a face value of rs.50,000.It carries interest at the rate of 12% payable annually and would mature after 4 year.For how much can Saleem sell this investment to a person whose

  2. Managerial Finance

    Assume that investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur?

  3. finance

    8. Calculate the return on investment in dollars and as a percentage for an investment that you purchase for $500 and sell for $600. (2.0 points) TIP: If you don't remember how to calculate return on investment, review the

  4. Business Math

    An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15

You can view more similar questions or ask a new question.