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 1.5 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 | 1.5 |
| C | 300,000 | 0.7 |
| D | 350,000 | -0.15 |
| Total investment | 1,000,000 | |
The market's required return is 11% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
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Capital Ideas The IMF And The Rise Of Financial Liberalization
Authors: Jeffrey M. Chwieroth
1st Edition
1789732468, 9781789732467
