Question
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.25 B 150,000 1.7 C 300,000 0.65 D
You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $300,000 | 1.25 |
| B | 150,000 | 1.7 |
| C | 300,000 | 0.65 |
| D | 250,000 | -0.25 |
| Total investment | 1,000,000 | |
The market's required return is 10% and the risk-free rate is 3%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations. %
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The Handbook Of Credit Risk Management
Authors: Sylvain Bouteille, Diane Coogan-Pushner
2nd Edition
1119835631, 978-1119835639
