Consider the following information and then calculate the required rate of return for the Scientific Investment Fund. The funds’ 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
The market required rate of return is 15 percent and the risk-free rate is 7 percent.
