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8. (10 percent) Assume that you manage a $12.00 million mutual fund that has a beta of 1.15 and a 9.70% required return. The
8. (10 percent) Assume that you manage a $12.00 million mutual fund that has a beta of 1.15 and a 9.70% required return. The risk-free rate is 2.20%. You now receive another $15 million, which you invest in stocks with an average beta of 1.05. What is the required rate of return on the new portfolio? Do not round your intermediate calculations.
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
