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please help Your portfolio consists of $39,230 invested in a stock that has a beta =0.7, $31,914 invested in a stock that has a beta
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Your portfolio consists of $39,230 invested in a stock that has a beta =0.7, $31,914 invested in a stock that has a beta =0.8, and $82,055 invested in a stock that has a beta =0.7. The risk-free rate is 1.4%. Last year this portfolio had a required return of 7%. This year nothing has changed except that the market risk premium has increased by 3.5%. What is the portfolio's current required rate of return? 9.52% 9.02% 8.52% 8.02% 7.52% Step by Step Solution
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