Calculate the Required Rate of Return for the Wagner Assets

question 19

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:
$\begin{array}{rr}\text { Stack }&\text { Investment }&\text { Beta }\\A&\$200,000 & 1.50 \\B&300,000 & -0.50 \\C&500,000 & 1.25 \\D&1,000,000 & 0.75\end{array}$

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

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