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6. Problem 8.16 (CAPM and Portfolio Return) eBook Problem Walk-Through You have been managing a $5 million portfolio that has a beta of 1.35
6. Problem 8.16 (CAPM and Portfolio Return) eBook Problem Walk-Through You have been managing a $5 million portfolio that has a beta of 1.35 and a required rate of return of 16.475%. The current risk-free rate is 5%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.05, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
