Calculate the Required Rate of Return for the Wagner Assets

question 17

Multiple Choice

Calculate the required rate of return for the Wagner Assets Management Group,which holds 4 stocks.The market's required rate of return is 15.0%,the risk-free rate is 7.0%,and the Fund's assets are as follows: $$\begin{array} { c r r } \text { Stock } & \text { Investment } & \text { Beta } \\\text { A } & \$ 200,000 & 1.50 \\\text { B } & 300,000 & - 0.50 \\\text { C } & 500,000 & 1.25 \\\text { D } & 1,000,000 & 0.75\end{array}$$

• A)10.67%
• B)11.23%
• C)11.82%
• D)12.45%
• E)13.10%