Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar Investment Beta A $200,000 1.2 B $200,000 1.6 C $400,000
Quantitative Problem:
You are holding a portfolio with the following investments and betas:
| Stock | Dollar Investment | Beta |
| A | $200,000 | 1.2 |
| B | $200,000 | 1.6 |
| C | $400,000 | 0.8 |
| D | $200,000 | -0.15 |
| Total Investment | $1,000,000 |
The market's required return is 9% and the risk-free rate is 4%. What is the portfolio's required return? Round your answer to 3 decimal places. Please do not round intermediate calculations.
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Fundamentals Of Auditing
Authors: Basu
1st Edition
8131728854, 978-8131728857
