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Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.25 B 200,000 1.5 C 400,000

Quantitative Problem: You are holding a portfolio with the following investments and betas:

Stock Dollar investment Beta
A $250,000 1.25
B 200,000 1.5
C 400,000 0.65
D 150,000 -0.25

Total investment

$1,000,000

The market's required return is 10% 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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