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I need number 16 8-16 CAPM AND PORTFOLIO RETURN You have been managing a s5 milion portfolio that has a beta of 1.15 and a
I need number 16
8-16 CAPM AND PORTFOLIO RETURN You have been managing a s5 milion portfolio that has a beta of 1.15 and a required rate of return of 11.475%. The current risk-free rate is 4%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolioStep by Step Solution
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