Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.25 B 150,000 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 | 150,000 | 1.50 | ||
| C | 300,000 | 0.85 | ||
| D | 350,000 | -0.35 | ||
| Total investment | $1,000,000 |
The market's required return is 11% 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 Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
