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Problem Walk - Through You have been managing a $ 5 million portfolio that has a beta of 1 . 2 5 and a required

Problem Walk-Through
You have been managing a $5 million portfolio that has a beta of 1.25 and a required rate of return of 12.625%. The current risk-free rate is 2%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.95, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to twaces
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