Question
Assume that you are holding the following portfolio: Amount Invested Stock X $22,000 Beta = 1.3 Stock Y $65,000 Beta = 1.8 Stock Z $95,000
Assume that you are holding the following portfolio:
|
| Amount Invested |
|
| Stock X | $22,000 | Beta = 1.3 |
| Stock Y | $65,000 | Beta = 1.8 |
| Stock Z | $95,000 | Beta = 2.2 |
If the risk-free rate of return is 2% and the market risk premium is 7%, then what is the required return on the portfolio?
show all work please
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
