Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.15 B 100,000 1.60 C 500,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta | ||
| A | $200,000 | 1.15 | ||
| B | 100,000 | 1.60 | ||
| C | 500,000 | 0.80 | ||
| D | 200,000 | -0.30 | ||
| Total investment | $1,000,000 | |||
The market's required return is 9% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
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Computational Finance And Its Applications
Authors: C. A. Brebbia, M. Costantino
1st Edition
1853127094, 978-1853127090
