You have been managing a

$4

million portfolio that has a beta of 1.5 and a required rate of return of

13%

. The current risk-free rate is

5.5%

. Assume that you receive another

S1

million. If you invest the money in a stock with a beta of 0.75 , what will be the required return on your

$5

million portfolio?\ a.

10.75%

\ b.

11.50%

\ c.

12.25%

\ d.

12.75%

\ e.

13.25%

16. You have been managing a $4 million portfolio that has a beta of 1.5 and a required rate of return of 13%. The current risk-free rate is 5.5%. Assume that you receive another $1 million. If you invest the money in a stock with a beta of 0.75 , what will be the required return on your $5 million portolio? a. 10.75% b. 11.50% c. 12.25% d. 12.75% e. 13.25%