Risk and Rates of Return Back to Assignment Attempts Average / 1 8. Problem 8.16 3 Click here to read the eBook: Risk in a Portfolio Context: The CAPM Click here to read the eBook: The Relationship Between Risk and Rates of Return CAPM AND PORTFOLIO RETURN You have been managing a $5 million portfolio that has a beta of 0.75 and a required rate of return of 14%. The current risk-free rate is 8.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.60, what will be the required return on your $5,5 million portfolio? Do not round Intermediate calculations, Round your answer to two decimal places B Grade it Now Save & Continue Continue without saving A ety w DO . BO d: * 36 4 % 5 0) > & 7 00+ 9 ) O del { R U P T O Click here to read the eBook: Risk in a Portfolio Context: The CAPM click here to read the eBook: The Relationship Between Risk and Rates of Return CAPM AND PORTFOLIO RETURN 12 IF You have been managing a $5 million portfolio that has a beta of 0.75 and a required rate of return of 14%. The current risk-free rate is 8.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 1.60, what will be the required return on your $5.5 million portfolio? Do not round Intermediate calculations. Round your answer to two decimal places % B