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Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $250,000 1.20 B 100,000 1.50 C 500,000
Quantitative Problem: You are holding a portfolio with the following investments and betas:
Stock | Dollar investment | Beta | ||
A | $250,000 | 1.20 | ||
B | 100,000 | 1.50 | ||
C | 500,000 | 0.65 | ||
D | 150,000 | -0.15 | ||
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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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 placesStep by Step Solution
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