Question
20 pointer Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.35 B 100,000 1.5
20 pointer
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $300,000 | 1.35 |
| B | 100,000 | 1.5 |
| C | 500,000 | 0.7 |
| D | 100,000 | -0.15 |
| Total investment | $1,000,000 | |
The market's required return is 11% and the risk-free rate is 5%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations. %
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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
