Question
Stock Amount Invested Beta 1 $300,000 0.6 2 300,000 1.0 3 500,000 1.4 4 500,000 1.8 A money manager is holding the above portfolio The
| Stock | Amount Invested | Beta |
| 1 | $300,000 | 0.6 |
| 2 | 300,000 | 1.0 |
| 3 | 500,000 | 1.4 |
| 4 | 500,000 | 1.8 |
A money manager is holding the above portfolio
The risk free rate is 6 percent and the markets required rate of return is 12.5%. what is the portfolios required rate of return?
a. 22.25%
b. 13.00%
c. 14.45%
d. 13.80%
e. 23.12%
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Finance And Financial Markets
Authors: Keith Pilbeam
2nd Edition
1403948356, 978-1403948359
