Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 11.25%, the risk-free rate is 4.65%, and the Fund's assets are as follows: Stock Investment Beta A $175,000 1.35 B $365,000 0.85 C $545,000 –0.45 D $1,145,000 2.08

Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 11.25%, the risk-free rate is 4.65%, and the Fund's assets are as follows: Stock Investment Beta A $175,000 1.35 B $365,000 0.85 C $545,000 –0.45 D $1,145,000 2.08

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4 stocks. The market's required rate of return is 13.0%, the risk-free rate is 6.00 %, and the Fund's assets are as follows: Stock A B BUD C D 10.58% 11.25% 12.37% 13.18% 13.77% Investment $ 200,000 300,000 500,000 $1,000,000 Beta 2.00 -0.60 1.20 1.00
Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market's required rate of return is 17.75%, the risk-free rate is 5.65%, and the Fund's assets are as follows:Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. Stock Investment Beta A $225,000 1.35 B $335,000 0.75 C $575,000 –0.45 D $1,055,000 1.98 A.21.28% B.18.26% C.18.08% D.19.96% E.18.83%
Consider the following information and then calculate the required rate of return for the Universal Investment Fund, which holds 4 stocks. The market's required rate of return is 13.25%, the risk-free rate is 7.00%, and the Fund's assets are as follows: Stock Investment Beta A $200,000 1.5 B $300,000 -0.5 C $500,000 1.25 D $1,000,000 0.75
Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4 stocks. The market's required rate of return is 17.50%, the risk-free rate is 3.00%, and the Fund's assets are as follows (Do not round your intermediate calculations.): please show work in excel Stock Investment Beta A $200,000 1.50 B $300,000 -0.50 C $500,000 1.25 D $1,000,000 0.75
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 14 %, the risk-free rate is 6 %, 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 1.1
Calculate the required rate of return for the Wagner Assets Management Group, which holds 4 stocks. The market's required rate of return is 17.0%, 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 Select the correct answer
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. Year 2015 2016 2017 2018 2019 Fund -15.06% 25.10 12.60 6.60 -1.32 Market -26.50% 19.70 10.00 7.60 -2.20 Jensen's alpha Information ratio Risk-Free 3% 5 2 4 3 Calculate Jensen's alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.) %
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.87. Year 2018 2019 2020 2021 2022 Fund -14.85% 25,10 12.90 7.20 -1.50 Jensen's alpha Information ratio Market -29.50% 20.00 10.90 8.00 -3.20 Risk-Free 3% Calculate Jensen's alpha for the fund, as well as its information ratio. Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places. 5 2 5 3 %
Consider the following information and then calculate the required rate of return for the Scientific Investment Fund, which holds 4 stocks. The market's required rate of return is 16 %, the risk-free rate is 7 %, 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 1.1 Round it to two decimal places without the percent sign (%), e.g., 13.54.
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year 2018 2019 2020 2021 2022 Fund -15.20% 25.10 13.00 7.40 -1.56 Market -30.50% 20.10 Jensen's alpha Information ratio 11.20 8.00 -3.20 Risk-Free 3% 4 Calculate Jensen's alpha for the fund, as well as its information ratio. Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places. Answer is not complete. 3.77 %
You have been given the following return information for a mutual fund, the market Index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97 Year 2018 2019 2020 2021 2022 Fund -15.13% 25.1 12.5 6.4 -1.26 Sharpe ratio Treynor ratio Market -25.5% 19.6 9.7 7.6 -2.2 Risk-Free 2% 4 2 4 3 What are the Sharpe and Treynor ratios for the fund? Note: Do not round Intermediate calculations. Round your answers to 4 decimal places.
Thank you