Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.15 B 100,000 1.70 C 400,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta | ||
|
| ||||
| A | $300,000 | 1.15 | ||
| B | 100,000 | 1.70 | ||
| C | 400,000 | 0.80 | ||
| D | 200,000 | -0.25 | ||
| Total investment | $1,000,000 |
| ||
The market's required return is 11% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
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The Engineers Cost Handbook Tools For Managing Project Costs
Authors: Richard E. Westney
1st Edition
0824797965, 978-0824797966
