Question
A portfolio consists of the following four stocks. The dollar investment and beta on each of the stocks are listed below: Stock Investment Beta A
A portfolio consists of the following four stocks. The dollar investment and beta on each of the stocks are listed below:
| Stock | Investment | Beta |
| A | $200,000 | 0.5 |
| B | $800,000 | 0.8 |
| C | $1,500,000 | 1.5 |
| D | $2,500,000 | -0.25 |
If the expected return on the market is 11% and the risk-free rate is 4%, what is the portfolios required rate of return?
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Essentials Of Real Estate Finance
Authors: David Sirota
11th Edition
1419520911, 9781419520914
