Question
A money manager is holding the following portfolio: Stock Amount Invested Beta 1 $5mi 0.7 2 6mi 0.6 3 4mi 1.5 4 5mi 2.0 The
A money manager is holding the following portfolio:
| Stock | Amount Invested | Beta |
| 1 | $5mi | 0.7 |
| 2 | 6mi | 0.6 |
| 3 | 4mi | 1.5 |
| 4 | 5mi | 2.0 |
The risk-free rate is 4 percent and the market's required rate of return is 15 percent. What is the portfolio's required rate of return?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
