Calculate the required rate of return for portfolio using CAPM Calculate the required rate of return for each fund.

• Naomi
• March 2, 2022

A 0.75
B 0.55
C 1.25
Risk-free rate 0.06
Market rate 0.12
Calculate the required rate of return for each fund.
q2
Mutual Fund D is made up of the following stocks

Stock % of Portoflio Beta Expected return
1 25% 0.75 0.17
2 35% 1.00 0.18
3 10% 0.90 0.22
4 17% 1.45 0.16
5 13% 1.25 0.19
100%Based on this data calculate the portfolio’s return and Beta
q3
You are provided with the following information about a portfolio Risk-free rate 0.05
Market Risk
Premium 0.12
Beta 1.55
Calculate the required rate of return for portfolio using CAPM