Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.20 B 150,000 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 | 1.20 | ||
| B | 150,000 | 1.70 | ||
| C | 400,000 | 0.75 | ||
| D | 150,000 | -0.15 | ||
| Total investment | $1,000,000 | |||
The market's required return is 9% 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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New Issues In Financial And Credit Markets
Authors: Franco Fiordelisi , Philip Molyneux, Daniele Previati
1st Edition
0230275443, 978-0230275447
