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Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.20 B 200,000 1.60 C 400,000

Quantitative Problem: You are holding a portfolio with the following investments and betas:

Stock Dollar investment Beta
A $250,000 1.20
B 200,000 1.60
C 400,000 0.80
D 150,000 -0.35
Total investment $1,000,000

The market's required return is 9% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.

%

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