Question
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.15 B 200,000 1.7 C 400,000 0.85 D
You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $200,000 | 1.15 |
| B | 200,000 | 1.7 |
| C | 400,000 | 0.85 |
| D | 200,000 | -0.35 |
| 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? Round your answer to 3 decimal places. Do not round intermediate calculations. %
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
