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Assume that you manage a $10 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%.
Assume that you manage a $10 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%. You now receive another $5 million, which you invest in stocks with an average beta of 0.65 . What is the required rate of return on the combined $15 million portfolio
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
