Question
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $200,000 1.30 B 200,000 1.70 C 500,000 0.70 D
You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta | ||
| A | $200,000 | 1.30 | ||
| B | 200,000 | 1.70 | ||
| C | 500,000 | 0.70 | ||
| D | 100,000 | -0.20 | ||
| Total investment | $1,000,000 | |||
The market's required return is 9% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
%
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Bank Valuation And Value Based Management Deposit And Loan Pricing Performance Evaluation And Risk
Authors: Jean Dermine
2nd Edition
0071839488,0071839496
