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The risk-free rate is 2.5 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1
The risk-free rate is 2.5 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 208 ,000 invested in a stock that has a beta of 1.0 and the remainder invested in a stock that has a beta of 1.2 . What is the required return on this portfolio?
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