8.3

Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta $250,000 200,000 400,000 150,000 $1,000,000 1.20 1.70 0.75 -0.25 Total investment The market's required return is 11% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places. %