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Help me answe this questions 8,9 7. Suppose you hold a portfolio consisting of S10,000 investment in each of 8 different common stocks. The portfolio's
Help me answe this questions 8,9
7. Suppose you hold a portfolio consisting of S10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you sell one of those stocks that has a beta of 1,00 and use the proceeds to buy a replacement stock with a bet of 1.55, What would the new portfolio's beta 8. You hold the following portfolio: If the risk free rate is 4% and the market retum is 9%, what is the required return? Beta StockInvestment ALX BDY TRO BNZ 0.7 82,000 14,000 61,500 13,900 0.9 9, Mikkson Co.'s stock had a required return of 12.5% last year, when the risk fre rate was 3% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk free rate and firm's beta remain unchanged. What is the company's new required rate of return Step by Step Solution
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