Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.25 B 200,000 1.50 C 300,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
Stock Dollar investment Beta
A $200,000 1.25
B 200,000 1.50
C 300,000 0.80
D 300,000 -0.30
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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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
