Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.2 B 100,000 1.7 C 300,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $250,000 | 1.2 |
| B | 100,000 | 1.7 |
| C | 300,000 | 0.8 |
| D | 350,000 | -0.2 |
| Total investment | $1,000,000 | |
The market's required return is 10% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places. ---%
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Global Development Finance The Role Of International Banking 2008
Authors: World Bank
2008 Edition
0821373900, 9780821373903
