Question
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.3 B 150,000 1.7 C 400,000 0.65 D
You are holding a portfolio with the following investments and betas:
| Stock | Dollar investment | Beta |
| A | $300,000 | 1.3 |
| B | 150,000 | 1.7 |
| C | 400,000 | 0.65 |
| D | 150,000 | -0.25 |
| Total investment | 1,000,000 | |
The market's required return is 9% and the risk-free rate is 5%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round intermediate calculations.
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The Commercial Aircraft Finance Handbook
Authors: Ronald Scheinberg
2nd Edition
1138558990, 978-1138558991
