Question
You are a money manager holding a portfolio worth $10 million that consists of the following five stocks: Stock Amount in $millions Beta A 4
You are a money manager holding a portfolio worth $10 million that consists of the following five stocks:
| Stock | Amount in $millions | Beta |
| A | 4 | 1.2 |
| B | 2 | 1.1 |
| C | 2 | 1.0 |
| D | 1 | 0.7 |
| E | 1 | 0.5 |
The portfolio has a required return of 12.0 percent, and the market risk premium is 8.5 percent.
What is the required return on Stock C? % (Give answer as % to 2 decimal places)
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-0176509736
