Question
Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.35 B 200,000 1.50 C 300,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta | ||
| A | $250,000 | 1.35 | ||
| B | 200,000 | 1.50 | ||
| C | 300,000 | 0.70 | ||
| D | 250,000 | -0.20 | ||
| Total investment | $1,000,000 | |||
The market's required return is 10% and the risk-free rate is 5%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
Answer: ___%
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Auditing Compensation And Benefits Programs
Authors: Kelli W. Vito
1st Edition
0894136720, 978-0894136726
