Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.25 B 100,000 1.70 C 500,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta | ||
| A | $200,000 | 1.25 | ||
| B | 100,000 | 1.70 | ||
| C | 500,000 | 0.85 | ||
| D | 200,000 | -0.30 | ||
| 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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Multinational Finance
Authors: Kirt C. Butler
3rd Edition
0324177453, 978-0324177459
